Arca Continental has agreed to acquire a majority stake in Ecuador’s Holding Tonicorp, it says. A spokesperson for the buyer declines to comment on the purchase price. Tonicorp, which operates in the beverage, dairy and packaging businesses, booked $308m in sales in 2012. HSBC advised Arca and JPMorgan Tonicorp, according to the Arca spokesperson. The transaction is subject to regulatory approvals. Arca already operates in Ecuador thorough the Inalecsa snack foods business.
Category: M&A
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America Movil Secures Bridge
America Movil has secured the credit facilities necessary to finance its EUR7.2bn ($9.7bn) bid for Royal KPN, it says. The Carlos Slim-owned telecom has agreed to binding loans with “recognized global financial institutions subject to common conditions for this type of operation” covering all necessary funds for the offer, without elaborating. Officials at the company do not respond to requests for comment. The group is heard to include several banks and include contingency lines in place previously. “America Movil does a lot of pre-funding – they went to the bond market when they were sitting on $5bn cash,” says a banker familiar with the company. The company has said it wants Euros to be a regular part of its issuing plans. AMX also submitted Wednesday the necessary documents to Dutch regulators to make a formal tender offer to KPN shareholders. AMX is offering EUR2.40 per share for 4.26bn shares representing the 70.2% of KPN it doesn’t own. The move is seen by analysts in part as an attempt to thwart Telefonica’s ambitions for KPN’s German operation. KPN investors are to vote October 2 on an offer from Telefonica Deutschland for the German E-Plus business. Deutsche Bank is advising America Movil on the process.
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ENAP Sells Assets to Straighten Balance Sheet
Empresa Nacional del Petroleo (ENAP) has agreed to sell its stakes in Primax gas station operations in Ecuador and Peru to Peruvian conglomerate Grupo Romero for $312m, it says. The Chilean state oil company is trying to strengthen its finances by offloading the non-essential positions – about 49% for each – to Romero, the controller of both. The proceeds will be used to reduce ENAP’s financial debt and strengthening its main business. It should boost results by $120m, ENAP says. The transaction should be completed in the fourth quarter, pending regulatory approval in Chile, Ecuador and Peru.
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Investor Buys Colombian Glass Producer
Colombia-based Investment firm Andina Acquisition Corp has agreed to buy Colombian glass maker Tecnoglass in a deal valued at $243m, it says. In the transaction, Andina will initially pay Tecnoglass 17.5m newly-issued shares valued at $10.18 each, a 1.3% premium to the previous closing price, and will also take on $65m of net debt. In addition, Tecnoglass shareholders will be entitled to receive up to an aggregate of 3m earn-out shares to be released based on meeting certain Ebitda or share-price performance targets in 2014, 2015 and 2016. The Andina shares issued to Tecnoglass holders are subject to a one-year lockup. Tecnoglass is a manufacturer of architectural glass and windows for the global residential and commercial construction industries, and reported $180m revenue and $27m adjusted Ebitda in the 12 months to June 30. EarlyBirdCapital and Morgan Joseph TriArtisan were financial advisors to Andina, and Graubard Miller and Maples and Calder were legal advisors. McDermott Will & Emery, Arnstein & Lehr and Gomez-Pinzon Zuleta Abogados were legal advisors to Tecnoglass.
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EEB Joins Isagen Chase
The board of Empresa de Energia de Bogota (EEB) has approved the utility’s participation in the process to acquire a stake in Colombian generator Isagen, it says. It joins Grupo Argos among those interested in the process through which Colombia’s government hopes to raise more than $2bn. It plans to prepare an offer, and hasn’t ruled out partnering with other bidders. Colombia unveiled the process in June to sell its 57.7% stake in Isagen, planning to raise COP4.48trn ($2.37bn) by offer offering shares at a minimum of COP2,850 per share, though it hopes to get more through the competitive process. Argos announced its intentions last week.
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Petrobras Continues Asset Sales
Petrobras has raised $2.1bn from the sale of stakes in four different assets, it says, as part of a plan to shed $10bn in non-core assets by 2017. The largest transaction is the sale of a 35% stake in the Parque das Conchas block in the Santos Basin to China’s Sinochem for $1.54bn. Petrobras also said that it would sell its stake in petrochemicals firm Petroquimica Innova to Videolar for BRL870m ($377m), including the assumption of BRL23m debt. It also raised BRL38m from the sale of a 20% stake in a Brazilian power plant. Finally, the company raised $185m from the sale of its stake in three oil blocks in the Gulf of Mexico. Petrobras is aiming to complete the bulk of the asset sale plan this year.
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CFR Still with Top Bid for South African
South African drug maker Adcock Ingram has received additional unsolicited bids from potential buyers, it says, but none yet bigger than a $1.3bn takeover offer from Chile’s CFR. CFR offered ZAR12.9bn ($1.3bn), or ZAR73.51 per share, last month. “Whilst there is still no certainty that a firm offer will either be proposed or implemented, the independent board continues to engage exclusively with CFR with a view to a firm offer being made to Adcock Ingram shareholders by way of a scheme of arrangement,” Adcock Ingram says. CFR Pharmaceuticals has registered for the sale of 3bn shares, working under a $750m-equivalent capital raise authorization, to help fund the purchase should its offer be successful.
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Coal on the Block as EBX Faces Cash Shortage
CCX Carvao da Colombia is negotiations to sell its Canaverales and Papayal projects, the Eike Batista-controlled company says. The news came late Wednesday after the announcement of Batista’s sale of control of LLX to US private equity fund EIG, raising up to BRL1.3bn ($555m). More asset sales are likely, as the EBX Group tries to raise cash to confront shrinking liquidity. A similar deal could be next for miner MMX, according to officials’ remarks on a conference call. OGX is in the most serious spot, with Barclays noting it does not expect the oil company to have enough cash to pay the regulator ANP the $160m it owes next week. “In our view, a near-term asset sale or capital infusion could be combined with a distressed tender offer to bond holders,” the shop says. Approval of the deal agreed with Petronas in May won’t come soon enough for $850m in proceeds to help OGX, Barclays adds. Blackstone is advising OGX on restructuring. OGX bonds were trading below 20 Thursday.
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Cosan Backs out of ALL Deal
Brazil’s Cosan has pulled out of a deal agreed last year to buy a 5.7% stake in logistics company ALL America Latina Logistica, it says. The agreement, which called for Cosan to buy up to BRL897m ($391m) in ALL shares, depended on conditions that Cosan claims have not yet been met. At the time of the deal, Cosan was seen paying a premium to enter in to ALL’s controlling group, building on an existing relationship between Cosan and ALL in the Rumo transportation venture.
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Eike Sells Control of LLX
US investment fund EIG Management has agreed to invest up to BRL1.3bn ($562m) in EBX Group logistics operator LLX, LLX says. EIG is to become the Brazilian’s controlling shareholder, with billionaire Eike Batista leaving LLX’s board, but retaining a “relevant” stake. The investor is to participate in a planned equity capital raise, buying shares at BRL1.20 each. This price compares to Wednesday’s BRL1.51 close. Proceeds will help LLX finish the Acu port project. Electricity and infrastructure specialist EIG has $12.8bn under management globally. Batista is actively seeking additional investment across his companies, according to local press and wire reports.