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.
Category: Equity
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 inDaily Brief
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.
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.
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 inDaily Brief
Exito Buys Casino Businesses in Uruguay
Grupo Exito has signed an agreement to acquire Grupo Casino’s Disco, Devoto y Geant supermarket businesses in Uruguay for $746m. Casino holds a 62.5% in Disco and Geant, and a 96.5% stake in Devoto. The equity value implies a $926m enterprise value. Ebitda numbers at the target companies were not being disclosed. Exito plans a $1.4bn capital raise to finance the acquisition, with Casino subscribing for an amount equal to the value of the transaction. Barclays advised and JPMorgan advised Exito, while Casino was advised by Rothschild.
Posted inDaily Brief
Kroton Raises BRL425m
Brazilian educator Kroton has priced a BRL425m ($266m) equity follow-on, coming at a 1.3% discount. The issuer priced 22.1m units, each consisting of 1 ordinary share and 6 preferred shares, at BRL19.25 each. Kroton’s share price had dropped 2.5% Wednesday to BRL19.50. The total includes a 15% greenshoe. In the deal, 0.8m shares are secondary shares sold by four minority holders. Kroton is raising funds to improve liquidity and expand. As Brazil’s middle class grows, the country’s private education sector is being rapidly consolidated by large listed operators such as Kroton, Estacio and Anhanguera. All three have now tapped the equity markets in the past 9 months to fuel their rapid expansion. Bradesco, BTG Pactual, Itau and Santander managed the Kroton transaction. Brazil’s Mahle-Metal Leve is scheduled to price today an approximately BRL300m follow-on of secondary shares sold by its German parent. Friday brings the IPO of E&P operation Perenco Brasil, which could raise BRL750m or more.