Colombia’s Nutresa received COP8.98trn ($5.1bn) in demand for its COP522.5bn equity follow before closing the subscription period on Friday. Demand came from 25,132 orders, with the Colombian food company expected to announce allocations by the end of next week. As is customary in Colombian transactions, the terms had been announced at the start of the subscription period, with the issuer offering 25m shares at COP20,900 each — indicating a total size of COP522.5bn ($295m). Nutresa is selling shares to raise funds for expansion and to increase its liquidity. Bolsa y Renta is managing the sale. Nutresa stock closed at COP23,940 Tuesday. The company was formerly known as Nacional de Chocolates.
Category: Equity
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Tereos Pulls FO Plug
Sugar producer Tereos International has postponed indefinitely its equity follow-on, owing to market conditions. The BRL450m-BRL600m ($280m-$370m) issue was designed to help the company reach the 25% free float required by local regulators after it first listed its shares in Brazil in August. The unit of the Europe-based Tereos Group was formed after its European and Asian assets were combined with Brazilian subsidiary Acucar Guarani. The issuer is still in discussions with the BM&FBovespa about how to reach the free-float threshold, but expects to go through with a share sale in the future. Proceeds were to be used for acquisitions and greenfield expansion in LatAm and other regions where Tereos operates. BTG Pactual, Credit Agricole, Morgan Stanley and Natixis had been hired as leads. Tereos has bioenergy and sugar operations in Brazil and Africa, and says it is the third largest sugar producer in Brazil. Tereos shares closed at BRL2.97 Tuesday. Brazilian equity issuance has struggled this year, with a recent wave of offerings last week seeing deals price at the bottom or below their ranges, or get pulled entirely.
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Uruguay Farm Developer Plans IPO
Union Agriculture Group has filed for a US IPO with the SEC, and is targeting an up to $287.5m size. The farmland developer, which acquires underutilized farmland in Uruguay and develops it for resale, is raising funds for further acquisitions. Union does not give an indication of the timing or number of shares to be sold. The issuer has hired Credit Suisse and JPMorgan to manage the sale. Since its founding in 2008, Union has raised funds though private placements totaling $353.3m. Union has acquired 84,670 hectares in Uruguay since 2008, which it estimates is worth $270m, and produces soybeans, wheat, rice, dairy, cattle, sheep and other products such as blueberries and honey. AdecoAgro, a similar play with assets in Brazil, Uruguay and Argentina, raised $314m in a January IPO, after resetting its range. Developer BrasilAgro pulled a planned follow-on in May. The last Uruguayan IPO was NZ Farming Systems’ $82m New Zealand-listed deal in 2006, according to Dealogic.
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Corpbanca Prices Follow-on
Corpbanca has auctioned off CLP135.2bn ($290m) in new shares in a follow-on Friday at CLP7.35 a share. The deal, led by Celfin and Corpbanca, is the first of three preferential offerings. The second round is set to conclude August 1.
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InterBolsa Completes Share Buyback
Colombian financial conglomerate InterBolsa completed a COP19.4bn ($11m) share buyback last week, acquiring 6.3m shares for COP3092.14 each. After the transaction, InterBolsa will have 198.6m shares outstanding.
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LatAm Equity Funds See Outflows
LatAm equity funds saw $85m in outflows for the week ended June 29, according to EPFR Global. EM equity funds, meanwhile, had $2.47bn in inflows for the week, though that number consisted primarily of two large Taiwan ETFs that took in almost $2bn. Performance was positive for the period, as EM funds rose 3.62% for the week ended June 30, but remain down 0.37% ytd, according to Lipper. LatAm funds also climbed by 3.78% for the week, while still remaining lower by 2.26% ytd. Global small and mid-cap funds jumped 3.57% for the week, and are up 3.97% ytd.
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Perenco Postpones Brazil IPO
Brazil’s Perenco e Gas do Brasil Participacoes postponed its IPO Friday, becoming the third LatAm issuer to pull a deal in what was a brutal week for the region’s equity markets. The Brazilian unit of UK-based oil exploration company Perenco, which cited market conditions for the decision not to move forward, had planned to sell 0.4m primary shares at BRL1,550-BRL2,000. That would have meant a BRL829m ($533m) sale if it had come at the BRL1,775 midpoint and a 15% greenshoe had been included. Investors cited the company’s dearth of producing assets as one of the main reasons why they lost interest in the offering. A busy week for equities, with follow-ons from Mahle, Kroton and BR Properties, had created a buyers’ market for LatAm investors, who were able to call the shots on pricing, an investor says. Mexican low-cost airline Interjet and Brazilian sugar and ethanol cooperative Copersucar also announced last week that they would be pulling or postponing their offerings after seeing Qualicorp miss the bottom of its IPO range by almost 19%, and Technos scraped the bottom of its pricing targets. Perenco, which operates in 16 countries worldwide, had planned to use the funds to develop its 5 blocks in the Espirito Santo Basin and acquire additional blocks. About a third of the raise was slated for acquisitions, including new government auctions. BTG, Itau and Morgan Stanley were leads.
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Posadas Sees Buyout Interest
Mexican hotel group Posadas is reviewing buyout proposals as it seeks to raise $50m in a stock offering during 3Q11 and a possible capital increase of $100m-150m, Scotia Capital says. Posadas stockholders’ do not intend to relinquish control the group, and the bonds were still trading last week at 2-3 points below the change of control put price of 101.00. Rothschild Bank has been mandated to find new investors for the company’s $50m stock offering and capital increase. Posadas was heard planning to sell bonds as part of a liability management exercise, according to sources familiar with the company’s plans. Specifically, the hotel operator is looking to address a 2013 domestic maturity totaling MXP2.25bn ($194m). Posadas is rated B3/B+, following downgrades by Moody’s and Fitch in November and December. It last visited the markets in January 2010, selling $200m in 2015 bonds at a 9.5% yield, through JPMorgan.
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Vale Board Approves Buyback
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.
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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.