Brazil’s Vale is to raise BRL2.71bn ($1.24bn) after agreeing to sell 36% of its VLI cargo operations, and is in talks to sell another 26%, it says. The miner has agreed to sell 20% of VLI to Mitsui for BRL1.51bn and 15.9% to a Caixa Economica Federal-managed fund for BRL1.2bn. A sale of another 26% to Brookfield Asset Management’s Brookfield Brasil may be on the way. Of the Mitsui and FI-FGTS sales, BRL2bn will go as cash contribution to VLI to be turned into new shares for Mitsui and FI-FGTS, and Mitsui will additionally pay Vale BRL709m for VLI shares. As the deal stands, Vale says it would keep 64.1% of VLI’s capital and control of the unit, but if the Brookfield component comes through, Vale would hold less than 40%. Vale is cutting non-core asset exposure, it says in explaining the strategy behind the move. The deals remain subject to approvals. BTG Pactual advised Vale, according to Dealogic data.
Category: M&A
Brazilian Retailer Gets Canadian Funds
Ontario Teachers’ Pension Plan is making a $70m in Brazilian e-commerce fashion retailer Dafiti Group, it says. The Canadian fund notes Dafiti’s growth potential in Brazil and Latin America in online retail. Dafiti currently has operations in Brazil, Argentina, Chile, Colombia and Mexico, it says. Dafiti has also received $10m funding from shoe brand consortium Leon Group, and $225m over the past two years since it launched. JPMorgan and Quadrant Capital Advisors are among its major investors.
CCX Parts with Mines
CCX Carvao da Colombia is set to raise $75m after agreeing to sell mining assets to Transwell Enterprises, it says. The deal includes the Canaverales e Papayal open-air coal mines in Colombia. CCX retains its San Juan mine. The sale is the latest in a series across the EBX Group as Eike Batista raises cash to pay off debts and continue funding operations at various companies in the group. Miner MMX is in exclusive discussions to sell control of its Porto Sudeste port to Trafigura and Mubadala. Batista is also preparing to sell an additional portion of the MPX power company, in which he sold a controlling stake to Germany’s E.ON earlier this year. Meanwhile, at oil producer OGX, the markets await a resolution to its debt situation, possibly through a restructuring offer that involves equity.
Estacio Adds Acquisition
Brazil’s Estacio Participacoes has agreed to acquire university operator Uniao dos Cursos Superiores SEB (Uniseb) in a deal worth BRL615m ($267m), it says. The for-profit educator is to pay half of the amount in cash and the rest via the issue of 17.8m new shares. The transaction remains to be approved by antitrust regulators.
Petrobras Sheds Colombian Assets
Petrobras has agreed to sell oil blocks and pipelines in Colombia to Perenco UK for $380m, it says, the latest in a string of non-core divestments. The package includes 11 onshore exploration and production blocks with an average production of 6,530 boe per day, as well as the Colombia and Alto Magdalena oil pipelines. Petrobras plans to keep its offshore oil blocks, one onshore block and gasoline stations in Colombia. The sale is pending approval from Colombia’s oil regulator. HSBC advised Petrobras. Perenco, whose Brazilian operation planned and cancelled an IPO in 2011, did not use an advisor in the sale, according to people familiar with the matter, who note that the sale was done through a competitive auction.
Sigdo Koppers Cuts Plastic Film in Chile, Argentina
Chilean conglomerate Sigdo Koppers is shedding its plastic film operations Sigdopack SA in Chile and Sigdopack Argentina, selling two plants to Peru-based Oben Holding Group for $51.6m. The move is part of a strategic decision to focus on mining and industry, it says. Oben, which produces BOPP raw film used in food and beverage packaging, picks up the operations in a consolidation move that also adds BOPA – nylon film – to its family of products. Oben declined to comment on how it is financing the purchase. BNP Paribas advised Sigdo Koppers, while Oben did not use an outside financial advisor. SK also used legal advisors Alliende, Villarroel, Contreras y Egugueren Abogados, as well as Estudio Miranda y Amado in Peru and Estudio O’Farrel in Argentina. Oben worked with Estudio Muniz, Ramirez, Perez-Taiman & Olaya in Peru, Philippi Abogados in Chile and Allende & Brea in Argentina.
Harvest Seeks Argie Sale
Harvest Natural Resources is in exclusive talks to sell itself to Argentina’s Pluspetrol,it says, in a deal worth $373m including debt. The move comes as the US-based oil and gas producer struggles to fund its exploration activities. Pluspetrol plans to retain Harvest’s 32% position in the Petrodelta joint venture with PdVSA, and spin off the company’s other assets to Harvest’s shareholders. Harvest’s non-Venezuelan assets, which include interests in Gabon, Indonesia, Colombia and China, would be managed by its current management under a newly created company. A previous attempt by Harvest to sell its 32% stake in Petrodelta to Indonesia’s state oil company PT Pertamina for $725m was blocked by the Indonesian government in February. Any deal would be subject to approval by Venezuela’s government.
South Africans Approve CFR Offer
The board of South African drugmaker Adcock Ingram agreed to support a ZAR12.6bn ($1.3bn) billion cash and share offer from Chile’s CFR Pharmaceuticals, Adcock says. CFR first proposed the bid in July for the South African, the target of other offers. CFR would pay as much as ZAR47.29 cash per Adcock share and issue up to 15.44 new CFR shares per Adcock share, or a total of ZAR75.92 per share. The drugmaker’s largest shareholder, the government-owned Public Investment Corporation, has said it would prefer a local owner and is not in favor of exchanging Adcock shares for CFR shares. CFR pledged to transfer jobs in the manufacturing of certain products to South Africa, in an attempt to smooth over government objection. The deal, which would generate revenue and cost synergies of up to $440 million, would see Adcock delisted from Johannesburg, where CFR would have a secondary listing.
Alsea Takes Walmex Restaurants
Mexican restaurant operator Alsea says it has agreed to pay MXP8.2bn ($627m) for Wal-Mart de Mexico’s restaurant unit. The unit is made up of 362 restaurants, mostly under the Vips brand. Walmex had been considering selling the business since June. Bank of America Merrill Lynch and Ritch Muller advised Alsea, which operates brands including Domino’s Pizza, Starbucks, Burger King and Chili’s in Mexico.
Batista Advances Additional Sales
Eike Batista is considering selling an additional portion of his stake in power company MPX, as well as MMX’s Porto Sudeste port, the two companies say. Batista-controlled miner MMX is in exclusive talks with Trafigura and Mubadala to sell control of the iron ore port near Rio de Janeiro. The companies have four weeks to work out a final contract. Under preliminary agreements, Trafigura and Mubadala would buy $400m of new stock in the MMX Porto Sudeste subsidiary, and come away with a 65% stake. Separately, Batista is negotiating the additional sale of shares in MPX. Batista holds 25.19% stake in the generator, after selling control to Germany’s E.ON earlier this year.