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.
Category: Equity
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.
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.
Posted inDaily Brief
Medica Sur Prices Follow-on
Medica Sur priced a MXP743m ($63m) follow-on Wednesday at MXP24 per share. The transaction consisted of 25m secondary shares sold by local development bank Nafinsa, which owned a 21% stake in the Mexican hospital operator, worth about MXP602m at the follow-on price, and around 5m primary shares. Proceeds from the primary sale will mostly fund expansions and a refurbishment of a Tlalpan facility in Mexico City. Founded in 1982, Medica Sur operates hospitals and clinics and provides other health services including diagnostics, research and imaging in Mexico City, Monterrey, Cuernavaca and the state of Mexico. Ixe and BBVA Bancomer are managing the sale.
Posted inDaily Brief
Minerva Convert Expected in July
Brazilian beef producer Minerva is expecting to price its BRL300m ($190m) domestic convertible bond on or around July 10. The preliminary prospectus had originally scheduled pricing on Wednesday. The 2015 bond is expected to pay a maximum of 100% of the DI rate, and be convertible at a price of BRL6.65-BRL8.85. Both the interest rate and the conversion price are to be determined during the bookbuilding process. Proceeds are to repay a BRL220m 2013 loan from Bradesco, which costs 119% of DI, and for working capital. Minerva is rated BBB minus on a national scale. S&P raised its outlook on the company to positive from stable earlier this week, citing Minerva’s improving capital structure and reduction of short-term refinancing risks. Goldman Sachs, Deutsche Bank and Banco do Brasil are managing the sale.