Vale’s board has approved a proposal for an up to $3bn share buyback with the aim of maximizing shareholder value. The Brazilian mining company aims to purchase up to 84,814,902 common shares and 102,231,122 preferred shares, or 5.9% of the free float. The program will be open for a 180 day period sometime between now and November 25.
Category: Equity
Posted inDaily Brief
Copersucar Sets IPO Date
Copersucar expects to price a BRL2bn IPO July 19. The Brazilian sugar and ethanol cooperative plans to offer 86.5 primary and 21.6m secondary shares at a range between BRL14.50 and BRL18.50. Copersucar is seeking funds to shore up its capital structure ahead of planned investments, including BRL200m to be spent in upgrading its Santos port. BAML, Credit Suisse, Goldman Sachs and Itau are leads. Copersucar handles sales, marketing, storage, distribution and other services for its member group of independent Brazilian sugar ethanol producers.
Posted inDaily Brief
Interjet Delays IPO
ABC Aerolineas, the holding company for Mexican budget airline Interject, has indefinitely delayed its IPO after citing market conditions. No time has been given for a possible return to market. Buyside sources say that the company received little interest from international investors, with only local accounts responding positively. The company had been looking to price 98.8m primary shares and 42.3m secondary shares at a range of MXP21 to MXP25 for a potential size of MXP3.2bn if priced at the mid range. Proceeds from the primary portion were earmarked for contingencies, strategic investments, aircraft acquisitions and facility improvements. The founding and controlling Aleman family had been the selling shareholder. JPMorgan was lead.
Posted inDaily Brief
Mahle Ties up Equity Follow On
Brazil’s Mahle Metal Leve sold 7.5m shares held by German parent Mahle Industriebeteiligunge in a secondary offering. The BRL41 price represented a 4.7% discount to the manufacturer’s closing level Thursday of BRL43. The BRL309m follow on increased the free float to 30%, up from 12.35% before the offering. The manufacturer of parts for cars, trucks and tractors is selling shares as part of a plan to migrate to the Novo Mercado section of the Bovespa. Banco Fator, Itau,and Deutsche Bank led.
Posted inDaily Brief
Perenco Set to IPO Today
Brazil’s Perenco e Gas do Brasil Participacoes is set to price an IPO today which could raise as much as $529m. The Braziian unit of UK based oil exploration company Perenco plans to sell 0.4m primary shares at the BRL1,550 to BRL2,000 range. This would mean a BRL829m sale if done at the BRL1,775 midpoint and a 15% greenshoes were included. A 20% hot issue is also available. Perenco, which operates in 16 countries worldwide, is seeking funds to develop its 5 blocks in the Espirito Santo Basin and acquire additional blocks. About a third of the raise will go to acquisitions, including new government auctions. BTG, Itau and Morgan Stanley are leads.
Posted inMagazine
Back to the Future
The potential for a repeat of North America’s tech boom has some investors salivating, but a lack of exit opportunities remains an obstacle.
Posted inMagazine
Buying Opportunity
Concerns over political and inflation risks have hit equity portfolios dedicated to the region. Investors are now on the hunt for value and diversification away from Brazil.
Posted inMagazine
Chile Chases Brazil
Brazilian corporates will almost certainly dominate equity offerings in the region this year with $8.13 billion al-ready sold through June 15, but Chile is also making its presence felt with […]
Posted inMagazine
Let’s Try That Again
European funds are increasingly eyeing LatAm PE in an effort to gain exposure to the growth in middle class consumption.
But can they avoid the mistakes of the past?
Posted inMagazine
Ready For Take Off
In the last three years, eight airlines in Mexico have ceased operations. But those remaining in the market are optimistic about growth and looking to expand.