Terrafina, the Fibra Mexican real estate fund established by Prudential Real Estate Investors, has agreed to buy $600m worth of industrial property from two American managers. Kimco Realty and American Industries have agreed to sell the fund 87 properties located throughout Mexico, Terrafina says. The sale is expected to close in the third quarter. Terrafina raised $765m-equivalent through an IPO in March, and indicated it would go after acquisitions in the $750m-$1.25bn range. Thursday’s deal adds to a portfolio of 146 industrial properties.
Category: M&A
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Slim Sheds Tobacco Stake
Grupo Carso has agreed to sell its 20% stake in Philip Morris Mexico (PMM) to Philip Morris International (PMI) for approximately $700m. The value was derived from a previously agreed formula, and may be adjusted based on performance during the next three years, the Carlos Slim holding company says. The move marks the end of a 30-year investment in the operation. PMI claims more than 70% of the market in Mexico. Carso did not use an advisor on the deal, according to a spokeswoman, and PMI spokespeople did not respond to a request for comment.
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ICA Looks to Trim Airport Stake
ICA is planning to raise as much as $400m from the sale of shares in Grupo Aeroportuario del Centro Norte (OMA), it says. The Mexican construction company’s Aeroinvest subsidiary has registered a shelf to sell as much as 100m shares, or a 25% stake, of the airport operator. A sale of the full amount would raise MXP4.709bn ($386m) if done at Thursday’s MXP47.09 closing price. Once approved by regulators, ICA could sell the shares at any time during a 3-year period.
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IFC Enters SulAmerica
The International Finance Corporation (IFC) has bought into SulAmerica, agreeing to purchase a BRL400m stake ($197m) from ING, which continues its exit from the Brazilian insurer. The deal is for 26.5m units, or 7.9%. The BRL15.09 per unit price suggested by the total value compares to Thursday’s BRL15.21 close. A unit consists of one common share and two preferred shares. ING’s position in SulAmerica will be reduced to approximately 13.6% after the deal is complete. IFC is to appoint one board member. The transaction is expected to close within 30 days, and follows ING’s $200m sale of 7.2% in March to the founding Larragoiti family. The transaction with the Larragoiti Family is expected to close in the third quarter of 2013, as it is subject to regulatory approvals. The moves are part ING’s plan for the divestment of all its insurance operations, it says, and it will review options for the divestment of its remaining stake “as and when appropriate.” ING has been in SulAmerica since 2002.
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Japanese Telecom Specialist Partners with Brazilian
Japanese manufacturer Oki Electric Industry has agreed to acquire a 70% stake in Brazilian electronics company Itautec’s automation and services business for BRL100m ($49m), Itautec says, as Oki looks to grow in emerging markets. Buying into the unit – spun off from Itautec, will give Oki, a telecommunications specialist, access to a growing Brazilian ATM industry. Itautec may receive additional payments if it meets certain business targets through 2015. The deal is expected to close before the end of the year.
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GeoPark Buys Gas Stake
GeoPark, a LatAm-focused exploration and production operator, has agreed to acquire a 10% stake in Brazil’s Manati gas field for $140m, it says. It acquires the stake in Brazil’s largest natural gas-producing field by buying Norwegian-listed Panoro Energy’s Brazilian subsidiary Panoro Energy do Brasil, which previously held the 10% stake. The Manati Field provides approximately 50% of the gas supplied to the northeastern region of Brazil and more than 75% of the gas supplied to the city of Salvador, GeoPark says. The transaction is subject to closing conditions.
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Itau Retakes Credicard
Confirming what had previously been rumored, Itau has agreed to buy Citigroup’s Brazilian consumer finance units for BRL2.77bn ($1.37bn), it says, extending the bank’s leading position in the country’s growing credit card market. Itau beat out other contenders for the asset including Santander and Bradesco. At the time the transaction was rumored, analysts saw the price at roughly 16-17x price/2012 earnings, considering only the card business. This compared to Itau’s 11-12x. “Although the expected price paid seems not accretive on a short-term multiple basis, strategically we believe the acquisition is important,” Brasil Plural said in a note. The Brazilian bank gets BRL8bn in assets the Banco Citicard and Citifinancial Promotora units, as well as the Credicard credit card brand. The transaction does not include Corporate cards, the Citi and Diners branded portfolios, and the Credicard Platinum portfolio, or Credicard American Airlines cards, Citi says. For it’s part, Citi is able to fulfill a step in the plan to exit non-core businesses, and the bank expects a $300m after-tax gain. Itau was Citi’s partner in the company until 2006. The move follows Itau’s spending of BRL10.5bn last year to take Redecard completely in-house. After the deal, Itau is expected to have about 40% of the credit card market, according to Brasil Plural, leading the market. The transaction is subject to regulatory approval.
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Petrobras Contemplates Argentina Sale
Petrobras is discussing the sale of assets in Argentina, though it says no deal has been reached. The Brazilian state-controlled oil company is “constantly analyzing opportunities,” it says in a filing, under its plan to divest $9.9bn in assets during 2013-2017. The company is in talks with several Argentine groups, but there is no timetable yet for making any deal, according to local news and wire reports citing public remarks Tuesday from CEO Maria das Gracas Foster. The comments followed talk that Petrobras had already agreed to a sale of part of its Argentine operations.
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Mitsui Enters Brazil Hydro Project
Japan’s Mitsui has agreed to enter the Jirau hydroelectric project in Brazil’s Amazon region, buying a 20% stake from GDF Suez in the ESBR Participacoes vehicle, the parties say, for about BRL1.14bn ($567m). The amount is based on a total BRL5.7bn value that GDF assigns to the entire 3,750 megawatt project expected to come online in 2015. GDF Suez bought a 9.9% stake from Camargo Correa last year, upping its equity in the project to 60% from 50.1%. After the Mitsui deal’s close, which is expected in the second half of 2013, subject to conditions and approvals, GDF Suez will have a 40% stake, with Eletrobras’s Chesf and Electrosul holding 20% each, as will Mitsui. Jiaru’s capex until completion was expected to be approximately BRL16bn as of December 2012. In 2009, the project agreed to a BRL7.2bn 25-year financing package from the BNDES, with BRL3.635bn directly from BNDES and BRL3.585bn via a group of Brazilian banks. The project, under construction on the Madeira River in the state of Rondonia, currently has 30-year power purchase agreements contracting for 73%, while the rest will go to shareholders.
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Herdez Closes Nutrisa Tag-Along
Grupo Herdez has ended up with 99.8% of Grupo Nutrisa following the close of a public share purchase offer, it says. Following up on a January agreement to buy 66% of the health and nutrition food company, Herdez is paying MXP2.97bn for the entire 99.8%, based on a price of MXP91.00 per share. GBM managed the tender. Herdez is considering a 10-year fixed-rate domestic bond transaction and a 5-year loan to fund the buy, its treasurer told LatinFinance in April.