Kinea, an investment firm controlled by Itau, has agreed to buy 20% of Grupo ABC for BRL170m ($84m), ABC says. Brazil’s largest indigenous communications player plans to use proceeds to make acuqisions and organically grow the various companies ABC operates. Kinea is to have representation on ABC’s board. Goldman Sachs advised the target, according to Dealogic data. ABC is among those tipped as a candidate for a public equity sale.
Category: M&A
Posted inDaily Brief
M&A off to Slow Start: Dealogic
Latin America-targeted M&A volume was $18.2bn in 1Q, according to Dealogic, representing the lowest first quarter since 2005. The total, from 309 deals, was down 41% from 1Q 2012. The LatAm share comes out of a $690bn global total that was up 18% from 1Q 2012. Mexico was the most targeted nation with $6.1bn, followed by Brazil with $5.1bn. Goldman Sachs leads the league tables, booking $4.40bn from five deals, followed by Bank of America Merrill Lynch ($4.90bn from two) and JPMorgan ($3.75bn from six).
Posted inDaily Brief
Bladex Sells Asset Management Unit to Managers
Banco Latinoamericano de Comercio Exterior (Bladex) has agreed to sell its asset management unit to members of its own asset management team, it says. The buyer is a newly-formed company, Alpha4X Asset Management, majority-owned by CIO Manuel Mejia-Aoun and other members of Bladex’s asset management team. The multilateral lender does not disclose the value of the unit, which was founded in 2006 with an initial investment of $100m. A spokeswoman declined to provide additional information. Also reinsurer XL Group has agreed to acquire a minority stake in Alpha4X. Bladex will continue in its role as anchor investor of the flagship fund for a period of up to three years, with an investment amount reducing until it exits. Bladex will also enjoy certain revenue-sharing rights during the three years. The sale of the unit is expected to close in the second quarter of 2013.
Posted inDaily Brief
Canadian Clinches Panama Mine
First Quantum Minerals has received 92.74% acceptance in its tender offer for Inment Minig, it says, as of an April 1 close. The $5bn offer gives First Quantum control of Canada-listed Inmet’s main project, the $6.2bn Cobre Panama mine in Panama, of which Inmet owns 80%. The remaining 7.26% of Inmet shares will be acquired compulsorily. Inmet had at first urged its shareholders not to accept the unsolicited offer, first announced in December, saying it did not reflect the upside of Cobre Panama. For each Inmet share, First Quantum offered CAD72.00 ($70.00) in cash, or 3.2967 First Quantum common shares, or a combination of CAD36.00 in cash and 1.6484 common shares.
Posted inDaily Brief
Germans Increase MPX Stake
Germany’s E.ON has agreed to pay at least BRL1.78bn ($886m) to increase its stake in Brazil’s MPX, MPX says, through a direct purchase of shares from controller Eike Batista and participation in a planned equity follow-on. Batista has agreed to sell 142m shares, or 24.5%, of the power generation company to E.ON, at BRL10.00 each, a price adjustable to as much as BRL11.00 each depending on certain conditions. The move takes E.ON to a 36.2% position. MPX plans to follow this with a public follow-on sale of primary shares, in which E.ON has committed to exercise its rights for at least BRL367m, at the same BRL10.00 per share price. BTG Pactual has been hired to manage the sale, for which the timing remains to be set. MPX and E.ON have signed a shareholder agreement establishing E.ON’s voting rights. The two parties’ existing joint venture is also to be folded back into MPX.
Posted inDaily Brief
Gerdau Unit Cuts Forest Assets
Gerdau subsidiary Seiva Florestas e Industrias has sold its 46% stake in Maco Holdings to Acoter Participacoes for BRL104.9m ($52m), it says. Seiva exits its reforestation assets in southern Brazil with the Maco sale, in order to focus on steel operations. Seiva plans to use the proceeds to distribute dividends to its shareholders, including Gerdau, which would use the cash received to tackle amortization of its debts, according to a spokesperson. Apsis Consultoria e Empreendimentos and Mynarski & Associados advised Seiva.
Posted inDaily Brief
Mexichem Makes US Buy
Mexichem continues to grow beyond its home market, with the $250m purchase of the base resin assets of PolyOne, the companies say. The US seller is divesting its vinyl dispersion, blending and suspension resin assets in order to shift its focus to specialty chemicals. For Mexichem, the deal boosts its US footprint, especially in the niche market for custom products. The assets booked revenues of $147m in 2012. The transaction is subject to regulatory approvals. The companies did not respond to requests for additional comment.
Posted inDaily Brief
Technos Takes Peer
Brazilian watchmaker Technos has agreed to acquire peer Dumont Saab do Brasil, it says, for BRL182m ($90m). Manaus-based Dumont Saab operates the Armani, Diesel, DKNY, Michael Kors, Burberry, Marc Jacobs and Adidas brands in Brazil. With the additions, Technos brings its total owned or operated brand count to 19. The deal is subject to shareholder and regulatory approval.
Posted inDaily Brief
Tonon Buys Peer
Tonon Bioenergia has agreed to purchase fellow Brazilian Paraiso Bioenergia, it says, for BRL170m ($85m), according to a report from Fitch. In the deal, Tonon will pay BRL50m cash and BRL120m in shares, preserving the proceeds, the buyer says, from Tonon’s $300m international DCM debut in January for other uses. Paraiso operates a sugar, ethanol and renewable energy mill with a 2.5m ton annual crushing capacity. The deal awaits regulatory approval. “The acquisition is strategically positive for Tonon as it increases its business scale and should allow the capture of synergies, given the proximity of its main unit to Paraiso’s industrial mill,” Fitch says, while noting the transaction has no impact on Tonon’s ratings.
Posted inDaily Brief
Tender Opens for BVA Bonds
The prospective buyer of Brazil’s Banco BVA has launched a tender for the bank’s 9.125% 2014 bonds, according to sources following the operation. Caoa, the group owned by Carlos Alberto de Oliveira Andrade, is offering $0.35 on the dollar plus accrued interest for the bonds, contingent on the tenderer completing the purchase of BVA and agreeing to repurchase the debt. There is some $45m outstanding. Deutsche Bank and Brasil Plural are managing the offer, open through Wednesday. Brazil’s central bank took control of Banco BVA last year, after finding violations of industry standards and deteriorating finances. Caoa formalized a proposal to purchase the bank last week.