LatAm equity funds eked out just $15m of inflows in the week ended November 9, with Brazilian funds losing $57m, according to EPFR. Still EM equity funds overall, booked a more impressive $2.08bn of inflows over the same period. Market performance for the asset class, however, was less than stellar. EM equity funds lost 2.84% during the week ending November 10, for 16.24% drop ytd, according to Lipper. Similarly, LatAm funds were down 2.62% on the week, for a ytd loss of 17.78%. Global small and mid-cap funds were down 0.35%, and have slipped 4.00% ytd.
Category: Equity
Posted inDaily Brief
Vale Preps Fertilizer Buy-Up
Vale’s potash producing subsidiary is preparing to spend BRL2.2bn ($1.3bn) to acquire the rest of Vale Fertilizantes it doesn’t already own. The Brazilian miner’s Mineracao Naque is offering BRL25 per ordinary or common share, representing a 1.3% premium to Thursday’s BRL24.68 preferred share closing price. Vale holds about two-thirds of Vale Fertilizantes. The offer is subject to two-thirds acceptance from minority holders. The buyback is scheduled for December 12. The operation is part of a long-term Vale strategy to diversify, and also a planned reorganization of fertilizer operations where Fertilizantes would be combined with other assets and eventually refloated through a new IPO.
Posted inDaily Brief
Brazil Mine Clinches Bought Share Deal
Toronto-based Colossus Minerals, operator of the Serra Pelada project in Brazil, has raised CAD86m ($85m) through a equity-linked bought deal. Colossus sold 86,250 units at CAD1,000 each, which includes the underwriters’ exercise of an overallotment. Each unit consists of a CAD1,000 face value of a senior unsecured 2016 gold-linked note and 60 common share purchase warrants. The 2016 notes pay between 6% and 13%, dependent on the price of gold. Each warrant entitles the holder to acquire one common share of Colossus at a price of CAD8.50. Dundee Securities, Clarus, Canaccord Genuity and GMP managed the deal. Proceeds will help fund the Serra Pelada gold and platinum mine in the state of Para, Colossus’ sole asset, which is expected to begin commercial production in 2013.
Posted inDaily Brief
CCR Plans Share Split
Companhia de Concessoes Rodoviarias (CCR) plans a 1-for-4 share split. The matter will be voted on at a November 25 shareholders meeting. CCR shares closed at BRL47.25 ($24.38) Tuesday.
Posted inDaily Brief
Rubiales Defines Convert Offer
Pacific Rubiales has defined the premium it will offer holders of its 2014 8.0% convertible bonds to convert to equity early. For each CAD1,000 ($988) face value tendered, the Toronto-based Colombian oil producer is offering face value in shares plus 86.7533 additional shares. This compares to the original conversion rate of 77.94 shares per CAD1,000 face value. The offer is open from November 9-29. Pacific Rubiales says it is undertaking the offer “to bring maximum balance sheet flexibility” so that it can pursue and execute its acquisition strategy. RBC is managing. Pacific Rubiales is also meeting bond investors on 3 continents this week, perhaps considering a cross-border bond transaction.
Posted inDaily Brief
LatAm Equity Snaps Outflow Streak
LatAm equity funds booked inflows of $11m in the week ended November 2, according to EPFR, finally breaking a 13-week outflow streak. Meanwhile, EM equity funds booked inflows of $3.49bn. In terms of performance, EM equity funds lost 1.92% during the week ending November 3, according to Lipper, for a 13.78% loss ytd. Similarly, LatAm funds were down 2.47% on the week, for a ytd loss of 15.85%. Global small and mid-cap funds were down 2.76%, and are down 8.42% ytd.
Posted inDaily Brief
Miner Launches Peru Funding
Toronto-based Sulliden Gold has raised CAD75m ($74m) to fund its Shahuindo mine in Peru, through a bought equity deal. The miner has sold 43.4m common shares at CAD1.73 each to National Bank Financial and Cormark, which may syndicate the shares. The two have an option to buy an additional 6.5m shares for up to 30 days. Proceeds will be used to expand the exploration program at the Shahuindo gold and silver project in Peru, to acquire additional mining concessions adjacent to Shahuindo, and to fund other activities at the property and for general corporate purposes.
Posted inDaily Brief
Tuscany to List in Bogota
Tuscany International Drilling, the Canadian-based and listed E&P company, is to list its shares in Bogota, but does not plan to place any new stock through the operation. There is no indication of timing.
Posted inDaily Brief
Contour IPO Aims for November Launch
ContourGlobal LatAm is targeting a launch of its Bogota IPO before the end of the month. The power generator with assets in Colombia and Brazil plans to sell 27.6m shares, or about 28% of itself. As is customary in Colombia’s local ECM, it will indicate the price when it sets the launch date. The issuer, part of US-based ContourGlobal, is raising funds to develop projects. The company’s main operating assets include a stake in the Termopaipa and Termoemcali power plants in Colombia, as well as a wind farm and two hydroelectric projects in Brazil. Bancolombia and Corredores Asociados are managing the sale.
Posted inDaily Brief
Itau Plans BRL2.1bn Buyback
Itau’s board has approved a BRL2.07bn ($1.18bn) share repurchase program, under which it may buy up to 9m common and 56.7m preferred Itau-Unibanco Holding shares. The program is in effect through November of next year. The common shares closed Tuesday at BRL27.49 and the preferred at BRL32.13, implying a value of BRL2.07bn for the operation if all shares are purchased.