Brazilian utility group Rede Energia is planning to raise BRL175.9m through a follow-on equity offering, it says in regulatory documents. Rede plans to offer 19m ordinary shares and 10.2m preferred shares, the leftovers from a rights offering worth BRL602m, most of which went to majority shareholder Empresa Eletrica Vale Paranapanema. It has not set a date for the auction, which is managed by Planner Corretora. Rede ordinary shares closed Friday at BRL6.10 and preferred at BRL6.21.
Category: Equity
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Educator Plans New Shares, Listing
Brazil’s Anhanguera Educacional Participacoes plans to migrate its stock to the Novo Mercado section of the Sao Paulo exchange and sell as many as 20m new shares. The Brazilian administrator of private universities plans to convert each of its preferred shares into one voting stock with shareholders then offered one share for each seven they already own. The new issuance would raise BRL630m if done for the full 20m share amount at Friday’s BRL31.40 closing price, and also offers a 20% hot issue and 15% greenshoe. The new issuance would take place after an October 29 shareholder vote on the matter, an IR official says, declining to state whether have been hired.
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GEM Equity Funds Pull In $2bn
In the 7 days to October 13, GEM equity funds took in over $2bn, EPFR Global says in its weekly report. LatAm equity funds, which attracted over $500m, extended their current inflow to 9 straight weeks, driven by interest in Brazil, whose benchmark equity index has jumped over 9% since the beginning of September despite fears that stiffer capital controls may be in the works. Lipper data show that LatAm equity funds gained 4.16% in the week ended October 14, and are up 17.40% year to date. EM funds gained 2.17% in the week and 16.72% year-to-date and global small and mid cap funds gained 2.09% in the week and 14.66% year-to-date.
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Guatemalan Bank Revisits Bolsa Dream
Guatemala’s Banco Industrial is reconsidering a listing on Mexico’s Bolsa, which it tried to do before the 2008-2009 credit crisis put paid to the transaction. Guatemala’s largest bank would consider a 20%-25% float, Luis Prado, director of the bank’s international division tells LatinFinance, noting that the exact timing has yet to be determined. Fresh cross-border debt issuance, including DPR securitizations, which it last raised in 2005 for $200m, could also be an option to fund expansion, he says. “Our goal is to expand through Central America,” Prado says. Already operating in Honduras, the bank opens in December in El Salvador, after receiving the appropriate licensing this year. Panama and Costa Rica are more distant possibilities for organic or acquisition-based expansion, he says. The bank will focus on organic growth in the domestic market to keep it competitive in the intensifying credit market, Prado says, but will not focus on domestic M&A. Fitch last week upgraded to positive from stable the BB credit rating of Industrial. The improved outlook reflects the bank’s strong local franchise, resilient asset quality and well-contained credit costs, adequate funding and liquidity, and good and stable profitability, says the agency. Fitch adds that the rating could be lifted if the bank sustains these trends and further improves capital adequacy. Industrial had 27% of the Guatemalan banking system’s assets and deposits as of June.
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Molymet Hits Equity Road
Chile’s Molymet has launched investor meetings ahead of its November offering of a 10% stake on the domestic stock market. The metals processor expects to raise more than $200m in the sale, which is designed to increase the liquidity of its float and raise funds for expansion. The tour will also include a US and European portion. The Gianoli, Mustakis and Matte families, who hold 96% of Molymet, have waived their priority rights to ensure a broad sale to the public, the company says. Banchile Citi and IM Trust are managing the sale, for which the issuer has not set an exact date. Molymet’s 4-year expansion plan is aimed at fulfilling growing demand for molybdenum, a copper byproduct used to strengthen steel, as the world economy recovers and steel consumption grows in Asia. Molymet shares closed Friday at CLP12,350.
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Codelco’s E-CL Stake Sale Expected in November
Bankers in Chile say that Codelco could be selling its 40% stake in energy subsidiary E-CL, formerly known as Edelnor, on the local exchange in late November. Analysts have estimated the stake to be valued at about $1.1bn. In September, the Chilean copper miner hired JPMorgan and Larrain Vial to explore strategic alternatives for the stake. Codelco co-owns E-CL with France’s GDF Suez, which holds a 52.4% stake, in addition to a 7.6% free float.
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Su Casita Defaults on Debt Payments
Mexico’s mortgage lender Hipotecaria Su Casita says it has defaulted on MXP730m, including MXP306m in long-term debt. Su Casita last week presented a restructuring plan to holders of MXP8.74bn in debt, offering longer-dated new debt and equity. The deal represents recovery of 70% in the case of short-term debt, and 51% for long-term debt holders, Su Casita says. As a result, Moody’s downgraded the ratings of the mortgage lender’s senior unsecured debt and global scale local currency to Ca from Caa2. The ratings are on review for possible downgrade. Holders of MXP6.75bn in long-term notes denominated in pesos and dollars would receive MXP1.5bn in new 5-year debt guaranteed by non-operating assets, paying TIIE plus 250bp (7.345% all in), MXP550m in new 3-year instruments guaranteed by non-operating assets, and MXP500m in 10-year subordinated convertible bonds with rates of 3%-8%, representing 10% of the restructured company’s capital upon conversion, as well as capital equal to 19.98% of the restructured company. Moody’s says this is a distressed exchange, which it considers a form of default. Su Casita, 40% owned by Spain’s Caja Madrid, has been seeking alternatives since a deal to sell itself to BBVA Bancomer fell through in September. Rothschild is advising on the restructuring, according to a company official.
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OHL Lays Mexico IPO Foundation
Spain’s Obrascon Huarte Lain has applied for an IPO on the Mexican Bolsa, according to regulatory documents. The Spanish builder and concession operator had earlier said it was considering the sale, and does not give specific detail for the deal in its filing. It has hired Credit Suisse, Santander, BBVA and UBS to manage, according to sources familiar with the transaction, and is targeting a November sale. The listing of the OHL Concesiones Mexico unit should raise $500m to $1bn, according to market sources, and give Mexico the large debut investors have been waiting for during a year characterized by small and mid cap IPOs. OHL is building and wholly owns the Bicentenario elevated Mexico City toll road, Libramiento Norte de Puebla road, and latter phases of the Circuito Exterior Mexiquense road. It also operates the Circuito Exterior Mexiquense Phase I road, Carretera Amozoc-Perote road and Toluca International Airport, of which it owns 87%, 55% and 33%, respectively.
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Lima Bolsa Set to Catch Fish IPO
Peruvian fishery Pesquera Exalmar is preparing to IPO in Lima, targeting an October 28 float. If successful, the deal would be the first Peru IPO since Interbank holdco Intergroup sold shares in 2007. Exalmar plans to sell 57.5m primary units and 54.4m secondary locally, as well as 119.9m primary shares internationally. The issuer does not indicate a value or price range, though says the sale should raise more than $100m when referring to proceeds in the prospectus. Proceeds are marked for repaying debt from recent acquisitions, buying boats, and expanding the footprint in Peru’s southern coast. The fishmeal and fish oil producer would be the second of Peru’s fisheries to go public, after Copeinca. Exalmar had gross income of $37.48m in 2009 and $47.43m in 2008, according to its prospectus. Santander, Citi and Interbank are managing the sale.
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Sare Sets Target Date
Mexico’s Sare Holding plans to price an equity follow-on October 28, according to regulatory documents. The homebuilder seeks to raise up to MXP805m through a sale of up to 317m primary units. Shareholders still must approve the sale October 20. BBVA and Santander are managing the transaction. Sare aims to increase production and improve efficiency following a debt restructuring, using proceeds to provide working capital for completing projects. Sare shares closed Tuesday at MXP2.83.