The IFC has exited its 14.85% position in Brazil’s Andrade Gutierrez Concessoes, selling it back to the Andrade Gutierrez parent. It does not disclose the value. The multilateral is selling a stake acquired through various investments since 2001, an IFC spokeswoman says. This is consistent with its strategy of exiting investments once its development role in an operation is fulfilled. The spokewoman declines to disclose the value of the position.
Category: Equity
Posted inDaily Brief
Arcos Launches Equity Sale
Arcos Dorados has launched a $1bn follow-on and could price as soon as Wednesday, but news that the LatAm McDonald’s franchise is venturing forth has so far failed to raise expectations for more ECM activity through to year-end. Arcos holders plan to sell 40.4m secondary shares, which would raise $1.07bn at Monday’s $24.12 close if a 10% greenshoe is included. A successful deal would restate the case that equity market is open for follow-ons from well-known issuers – if there are any in need of funds – after TIM Participacoes sold a BRL1.72bn ($1.01bn) follow-on October 4. “TIM and Arcos were very specific situations, as they are companies doing well even in this challenging environment. But you don’t have many stories like that available,” says a Sao Paulo-based ECM banker, who expects few or no deals for the remainder of 2011. The sellers of the Arcos Dorados shares are private equity funds linked to DLJ, Capital International and Gavea, which bought McDonald’s LatAm operations along with Arcos controller Woods Staton in 2007. They are looking to take advantage of the success of a well-demanded $1.25bn April IPO and subsequent strong aftermarket performance. Bank of America Merrill Lynch, Credit Suisse, Citi, Itau, JPMorgan and Morgan Stanley are managing the Arcos follow-on sale. This is the same bank group that led the IPO – the region’s only IPO to price above its target range this year.
Posted inDaily Brief
Quinenco Set for Capital Raise
Quinenco has approved a CLP225bn ($446m) capital increase, through an equity rights offering. The Chilean conglomerate controlling holdings of the Luksic family is raising funds for its participation in the capitalization of shipping company Compania Sud Americana de Vapores and other projects. Earlier this month Vapores announced a $1.2bn capital raise, with Quinenco contributing $1bn to help turn around the struggling shipper.
Posted inDaily Brief
Arcos FO Seen this Week
Arcos Dorados is expected to price an equity follow-on as soon as this week, raising speculation that other strong issuers could also follow suit. Private equity stakeholders in the McDonald’s operator are taking advantage of the success and strong aftermarket performance of the $1.25bn April IPO to sell a to-be-determined amount of secondary shares. Some of the region’s better-known companies could also soon file follow-ons to ready themselves for the opening of any windows before year-end. IPOs, however, are another story and are unlikely to emerge until 2012, bankers say. Arcos Dorados filed with the SEC at the beginning of the month for a $50m deal, but that number is not binding and size is expected to be much larger. The sellers include funds linked to DLJ, Capital International and Gavea, which bought McDonald’s LatAm operations along with Arcos Dorados controller Woods Staton in 2007. Bank of America Merrill Lynch, Credit Suisse, Merrill Lynch, Citi, Itau, JPMorgan and Morgan Stanley are managing the Arcos follow-on sale. This is the same bank group that led the IPO – the region’s only IPO to price above its target range this year.
Posted inDaily Brief
Mexico’s Explores MILA Partnership
Mexico’s stock exchange is interested in exploring operational partnerships with the Peruvian, Chilean and Colombian bourses making up the Mercado Integrado Latinamericano (MILA). The Bolsa says no agreement has been made yet, but there are possibilities for investments or a strategic alliance. Executives from the Lima and Bogota exchanges have said that tie-ups with Mexico and Panama would be a logical next step for MILA. These types of expansions and the improvement of the existing cross-listing platforms are top priorities in the next five years.
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Pemex and Sacyr United in Repsol Bid
Despite falling just short of having sufficient shares to take control of Repsol, Pemex and Sacyr-Vallehermoso are keeping their agreement to pool their resources in their bid for the Spanish oil firm. Together both companies now hold 29.5% of Repsol, putting them within spitting distance of the 30% required for a full takeover bid. The Mexican state-owned oil producer and the Spanish construction company agreed in August to pool their voting power to obtain maximum representation on Repsol’s board. Pemex has doubled its position to reach 9.49%, but is still shy of the 9.8% stake it committed to in the agreement. This comes after Pemex retapped its 6.5% 2041s last week for another $1.25bn, pricing it 102.131 to yield 6.339% or 315bp over. The bonds closed at 104.625 mid market Friday after strong day in the credit markets.
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Swedes Finish with 98% of Chile’s CTI
Swedish home appliances maker Electrolux has reached 97.79% ownership in Chile’s Compania Tecno Industrial (CTI), following the close of a tag-along offer. Electolux bought 64% of its Chilean peer in August for $691.5m equivalent from Sigdo Koppers, and has now spent an additional $570m equivalent. It offered investors the same CLP34.87 ($0.07) per share for remaining CTI shares and CLP325 per share for CTI’s listed Somela unit. CTI is to be consolidated into Electrolux this month.
Posted inDaily Brief
Telebras Plans Rights Offer
Telecomunicacoes Brasileiras (Telebras) will offer existing shareholders the right to buy up to BRL300m ($171m) in new shares. Telebras is obliged to make the offer following an injection of capital by the Brazilian government, and has until June of 2012 to make the offer. The Brazilian government announced a plan last year to revive the one-time telecommunications monopoly and use it as the vehicle to expand broadband internet services in Brazil, investing BRL3.22bn over four years.
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BRICS Set Up Exchange Alliance
Brazil’s BM&FBovespa has agreed to form an alliance with the Hong Kong, Johannesburg, Moscow, Bombay and Indian National exchanges. Together, these markets represent a combined listed market capitalization of $422bn, a monthly trading volume of $422bn as well as 9,481 listed companies. Initially the exchanges will cross-list benchmark equity index derivatives on alliance member boards, but they are expected to later develop more innovative products to track the combined BRICS exchanges.
Posted inDaily Brief
Eike Ups OGX Position
Brazilian magnate Eike Batista has raised his stake in his E&P company OGX to 62.45%. The billionaire bought structured notes equal to 46.8m shares, or a 1.45% stake. At Tuesday’s BRL12.29 closing price, the additional shares would be worth BRL575m ($329m).