Sao Paulo based lender Banco Indusval has agreed to acquire Banco Intercap at its half-year book value, it says in a regulatory filing after Wednesday’s close. Intercap shareholders will take a stake in Indusval, with prices to be determined once financial statements to June 30 have been prepared. The deal will grow Indusval’s capital base, such that shareholder’s equity will total close to BRL700m ($320m). Indusval had a market cap of BRL451.6m at the end of the first quarter, and reported a pre-tax loss of BRL145.2m over the period. One of Intercap’s controlling shareholders, Afonso Antonio Hennel, is to become vice-chairman of Indusval, and the other, Roberto de Rezende Barbosa, will join the board. The acquisition is subject to regulatory and shareholder approval. The privately-held Intercap had shareholders’ equity of BRL117m at the end of the first quarter.
Category: M&A
Enersis Earmarks $2.4bn for Acquisitions
Chile’s Enersis could spend up to $2.4bn over the next two years increasing the size of minority stakes and on new acquisitions, CEO Ignacio Antonanzas Alvear says. The energy generator and distributor could spend $300m-$700m per opportunity to increase its stakes in companies in Chile, Colombia, Peru and Brazil. New acquisitions could include a large “transformational” purchase in Brazil or smaller deals of $400m to $1bn in Peru or Colombia. The company will look for distribution businesses that can be turned around. “Of course I would love to be buying something tomorrow, but no rush,” he says. In March, Enersis raised CLP2.84trn ($6bn) in an equity capital raise, intended to fund acquisitions. Antonanzas spoke to LatinFinance on the sidelines of MILA Day in New York. The firm reported operating revenue of CLP1.46trn in the first quarter, down from CLP1.62trn a year earlier.
Alsea’s Axo Acquisition Confuses
Mexican fast food operator Alsea will buy a 25% stake in retailer Grupo Axo, but the company has not released any financial details about the transaction. The lack of details on the purchase price and margins of the business being acquired, as well as the fact that Axo operates in a different area to Alsea, create uncertainty around the move, says Banorte-Ixe analyst Marisol Huerta. But the transaction could end up being positive for the company in the long run, she added. Another Alsea analyst declined to comment on the acquisition, saying it was impossible to judge whether it was positive or negative in the absence of detail. Alsea shares fell 3.83% on Tuesday, closing at MXP27.65. The deal is set to close on July 4. Officials at Alsea could not be reached for comment.
ICA Exits RCO
ICA has agreed to sell its position in the Red Carreteras de Occidente (RCO) road concession to partner Goldman Sachs for MXP5.07bn ($379m), it says. The unloading of the 18.7% stake comes as the Mexican builder sells various assets in order to improve its liquidity position as its project backlog stalls. It will use proceeds to repay short term debt. “This is the result of a competitive process started one year ago,” ICA CFO Victor Bravo says in a conference call. He explains the deal comes after ICA examined several alternatives for the asset, for which ICA has fulfilled its construction obligations and represents only a “financial investment” going forward. The deal comes at about 14.1x 2012 Ebitda, which Bravo calls “comparable” to the industry standard, and gives ICA a gain of MXP700m over the book value. The transaction should leave Goldman Sachs with a 70% stake in the 750km Mexican road network, with the remainder held by owners of RCO’s certificados de Captial de Desarrollo (CCDs). ICA will continue to provide services to the concession. The deal is subject to government and regulatory approval, and is expected to close in Q3. RCO is a concession won in 2007 by ICA and Goldman Sachs, and popularly known as Farac at the time. ICA is scheduled to raise more than $300m through next week’s sale of its shares in airport operator Grupo Aeroportuario del Centro Norte (OMA). The RCO sale should knock out a third of ICA’s corporate debt, according to Monex, with the OMA divestment taking out another 30%, leaving ICA with 8.9x net debt/Ebitda, down from 11.6x in 1Q 2013. RCO, meanwhile, is planning a reopening of its domestic 2032 ABS, looking to raise up to MXP1.8bn. It raised MXP8.12bn through the original toll-revenue securitization in Mexico’s domestic market last year, and in March brought the cross-border markets a first-of-its-kind MXP-denominated bond secured by toll road assets, raising MXP7.5bn.
Bradesco Increases Fleury stake
Minority investors including a subsidiary of Bradesco have increased their stake in Brazilian healthcare services group Fleury, Fleury says, spending BRL278m ($128m). The Delta FM&B investment fund has exercised a put option to sell Fleury shares to the Integritas vehicle through which the Core Participacoes fund and Bradesco’s Bradseg Participacoes hold their stake in Fleury. Core acquired 9.8m shares, or 6.27%, and Bradseg bought 3.3m shares, or 2.11%, all at a BRL21.05 strike price previously agreed. The level compares to Tuesday’s BRL18.89 closing price. Core now holds 6.27% of Fleury and Bradseg 4.63%. Delta FM&B made the divestment to focus on investments in its hospital chain, Rede D’Or.
Fibra Uno Continues Spending Equity Proceeds
Fibra Uno has spent MXP3.8bn ($296m) on new properties, the real estate fund says. The portfolio includes eight office properties and a Hilton Hotel in Mexico City and a shopping center under construction in Aguascalientes. Fibra Uno plans to pay MXP2.63bn in cash and the remainder in shares. Looking ahead, the fund is considering a domestic bond this year to get a leverage ratio around 30%, from 25%, after funding itself through equity sales. It raised $1.73bn-equivalent in a January follow-on, adding to the $1bn it raised in previous transactions.
Itau Buys in to Cencosud Credit
Brazil’s Itau has agreed to buy a 51% stake in Chilean retailer Cencosud’s credit card business in Chile and Argentina, for $307m, the two say. Itau will fund all credit card loans, worth around $1.3bn, in both Southern cone countries once the deal is wrapped up, in 12-18 months. Cencosud plans to use proceeds from the deal to reduce its debt and finance growth. The transaction remains to be approved by regulators in Argentina, Brazil and Chile.
Kuo Exits Carbon Black JV
Mexican Conglomerate Grupo Kuo has agreed to sell its 60% share in its Negro de Humo (Nhumo) joint venture to partner Cabot International, it says. Cabot, which has held about 40% of the JV since 1990, adds the 60% equity for $105m, with $80m payable on the deal’s close, Cabot says. At the closing, 100% of the stock will be changed over to Cabot shares, and Kuo will receive $25m through the redemption of preferred shares that have 6.0% annual dividend. The deal is slated to close by fall 2013, pending regulatory approvals. Cabot highlights Nhumo’s top spot as a carbon black producer in Mexico and explains the buy as building Cabot’s carbon black business in an important growth market. The JV had adjusted Ebitda generation of $41m for fiscal 2012. Grupo Kuo was advised by Atlas Advisors and worked with external law firms Basham, Ringe y Correa and Piza Abogados. Cabot was advised by law firm Santamarina y Steta and did not use an external investment bank advisor.
San Antonio Unloads Colombian Operations
Estrella International Energy has agreed to buy 100% of San Antonio International’s Colombian operations for $122m cash, it says. The Argentina-based Canadian-listed buyer claims the deal will make it Colombia’s largest oil and gas services provider. Estrella plans to inject $31m into the company to repay indebtedness for working capital. Financing is to come through a $97m loan from Estrella controlling shareholder Ringo Holding, an entity controlled by Southern Cross Group. Ringo also agrees to buy CAD130m ($128m) in preferred stock. The buyer is also planning to take out a $50m-$58m seven-year Colombian bank loan, or, failing that, an additional $56m loan from Ringo. The transaction is expected to close August 1. San Antonio, controlled by Brazil’s GP Investimentos, continues to operate in Brazil, Argentina, Bolivia, Peru, Ecuador, and Mexico.
Santander Picks Up ING Mexican Mortgage Unit
Santander Mexico has agreed to buy ING’s Mexican mortgage business, it says, spending MXP643m ($51m). The deal gives Santander a MXP12.3bn mortgage book, making it the country’s number two provider. The deal is expected to close in the second half of the year, pending regulatory approvals.