Category: M&A

Brazilian education provider Abril Educacao bought two schools late last week. The Grupo Abril subsidiary paid BRL130m for Centro Educacional Sigma, and BRL103m for primary and secondary educator Colegio Motivo. Abril will pay BRL103m upfront for Sigma, paying the remainder in five annual installments of BRL5.4m, indexed to CDI. The deal gives Abril a presence in Brazil’s Midwest. The Motivo acquisition, for which it is putting down BRL81m when the deal closes and the rest in 2014 and 2015, will expand Abril’s presence in the fast-growing northeast of Brazil.

Mexican telecom America Movil has bought a 10.8% stake in Shazam Entertainment for $40m and entered a strategic alliance to develop the business in the Americas. Shazam, established in 2002, produces a smartphone app to consume and share music and TV programs.

Shareholders in Brazil’s Rede Energia have opted for a competing acquisition bid from Energisa, over a package put forward by CPFL and Equatorial last year. Under the deal, Energisa will offer creditors three options for repayment. The first is to have debt repaid in 2045, in which case secured creditors would get TR+2% interest and unsecured creditors, 1% interest. The second would offer an interest pick-up – to TR+4% on secured debt and ICPA+1% for unsecured debt, but only if holders increase their investment by 90%. Under a third option, creditors would get three-quarters of their principal back 30 days after regulatory approval comes through. Rede filed for bankruptcy protection in November. Controlling shareholder Jorge Queiroz de Moraes on Monday cancelled an agreement reached in December to sell his stake to CPFL and Equatorial for BRL1. Under that agreement the buyers would have also taken on debt and committed to making other investments.

The Chilean subsidiary of Antofagasta will take a 40% stake in hydroelectric operator Alto Maipo from AES Gener for around $300m. Alto Maipo has been established to build and run two hydro power stations around 50km southeast of Santiago. Antofagasta Minerales, the subsidiary making the acquisition, will use up to a third of the electricity from the plant at its Los Pelambres mine from 2015, under a 20-year power purchase agreement.

Brazilian ports firm Wilson Sons finalized its acquisition of Brazilian Intermodal Complex (Briclog) Monday. The deal was agreed in 2011 and comprises BRL89.8m worth of shares and BRL32.1m of debt.

Mexican bottler Coca-Cola Femsa (KOF) has agreed to buy Brazilian firm Companhia Fluminense de Refrigerantes (CFR) for $448m in an all-cash deal that broadens the firm’s LatAm footprint. CFR’s Ebitda came to $40m in the year to the end of March. The acquisition was seen as positive for KOF by one analyst following the company, who says the deal is small for the buyer but offers synergies with its existing business. CFR operates in parts of Brazilian state Minas Gerais, Rio de Janeiro and Sao Paulo. It has one bottling facility and four distribution centers. KOF has 62 bottling centers worldwide, having expanded out of LatAm in December to buy a Philippine bottler. KOF CFO Hector Trevino told LatinFinance recently the firm would look at further acquisitions in Mexico or Brazil, where it can leverage its existing infrastructure and capabilities, and would consider local currency funding to cover any such purchases. Fitch says the transaction will be fully financed with the firm’s available cash and will not alter KOF’s ratings.

Banco de Bogota has agreed to buy Grupo Financiero Reformador through its Credomatic subsidiary for $411m. The deal will make BAC Credomatic Guatemala’s third largest private bank, with $2.8bn in assets. Banco de Bogota is a subsidiary of Grupo Aval.

Itau Unibanco has agreed to buy Banco BMG’s insurance business for BRL85m ($39m). The target, BMG Seguradora, generated BRL42.4m in retained premiums in the first five months of the year, a 77% increase year on year. Itau says the deal will not have a significant impact on its results. Itau already has an agreement with BMG for the sale of payroll loans in Brazil.