Chilean financial conglomerate Grupo Security has agreed to pay more than UF6.2m ($300m) to acquire a portfolio of insurance, investment and brokerage businesses operating under the Cruz del Sur Brand from Grupo Angelini, it says. The package includes Cruz del Sur Seguros de Vida, Cruz del Sur Administradora General de Fondos, Sociedad de Assorias e Inversiones Cruz del Sur and Cruz del Sur Corredores de Bolsa. Grupo Security will also acquire 51% of Hipotecaria Cruz del Sur Principal for UF0.063m as part of the deal. JPMorgan advised Grupo Security on the transaction, and Baker & McKenzie served as its law firm.
Category: M&A
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Copec Agrees to Lower Price for Terpel
Chile’s Copec has accepted a reduced $270m bid from Quinenco for fuel company Terpel’s domestic assets, it says. The price is lowered from the $320m the parties agreed to last year, before antitrust regulators forced the companies to review the deal, citing a risk of higher prices due to lack of competition. The purchase is expected to be completed within 90 days, after which Quinenco has six months to comply with a request to sell 60 gas stations in Chile. JPMorgan had been advising Terpel and Santander advised Quinenco.
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Vale Increases Hydro Stake
Vale has agreed to buy an additional 12.5% of a hydroelectric power plant from Suzano, it says, for BRL223m ($115m). Vale will now own 60.9% of the 1,524-megawatt Capim Branco I and II facilities. Owning a larger stake in the facility located in Minas Gerais will help the Brazilian miner save on energy costs, while for Suzano the sale of a non-core assets will aid its balance sheet. Suzano has sold the remainder of its position to Cemig for another BRL97m. Suzano had a 17.9% stake prior to the sales, according to the Capim Branco website, and Cemig a 21.1% position. Votorantim is also a minority owner.
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Canadian Advances Closer to Panama Mine
First Quantum Minerals has moved closer to clinching the takeover of Inmet Mining, it says, with holders representing 43m, or 61.5%, of Inmet shares accepting a $5bn unsolicited offer. It has also extended the deadline to March 21 from March 11. Canada-listed Inmet’s main project is the $6.2bn Cobre Panama mine in Panama, of which it owns 80%. Inmet had previously urged its shareholders not to accept the offer, first announced in December, saying it did not reflect the upside of Cobre Panama. For each Inmet share, First Quantum is offering 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.
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Investors Bet on Brazilian Eyewear
A group of international investors comprised of 3i, Neuberger Berman Group and Siguler Guff have agreed to buy Brazilian eyewear retailer Oticas Carol, 3i says, for BRL108m ($55m). CEO Ronaldo Pereira will retain his position and is increasing his stake in the company, according to the statement. Oticas Carol is in the process of boosting the number of stores throughout Brazil to 600 from 490 by the end of the year. The investors call Brazil’s eyewear sector “highly fragmented” and note that it grew by 15% per year during 2006-2012. The deal is expected to close by the end of the month.
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HRT Sells Air Logistics Business
Brazil’s HRT Participacoes em Petroleo has agreed to sell its air logistics business, Air Amazonia, to US aircraft manufacturer and operator Erickson Air-Crane, for an expected $65m-$75m, it says. The value depends on the final details of a service contract. The oil and gas explorer will sell its 14-helicopter rotary-wing fleet to Erickson, which will for three years service HRT’s Solimoes Basin operations. HRT says selling the business will increase efficiency by letting it focus on exploration, among other benefits.
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Argie Bolsas Plan Tie-up, IPO
The Bolsa de Comercio de Buenos Aires and the Mercado de Valores de Buenos Aires (Merval) plan to create a joint exchange and hold an IPO for shares of the combined entity, to be called Bolsas y Mercados Argentinos, the pair says. The finalization of the agreement comes after each side’s president and boards approved the plan, which was initially discussed last year. The two will each contribute their respective shares in securities depository Caja de Valores as well as fresh capital.
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Copeinca Taps Trio to Fend off Chinese
Copeinca has hired UBS, DNB Markets and Carnegie as advisors, it says, as the Peruvian fishery attempts to defend itself from an unsolicited takeover attempt by China Fishery Group (CFG). It is exploring “strategic alternatives,” including alternative bidders, after CFG announced an approximately $550m offer for Copeinca’s outstanding shares last week. Calling the offer unattractive, Copeinca says none of the shareholders represented on its board have entered into any agreements with CFG. Both Dyer Coriat Holding and Weilheim Investments, owners of respective 32.6% and 6.0% stakes, have stated that they will not participate. Only shareholders representing a total of 25% have either provided pre-acceptances entered into option agreements, both of which may be withdrawn, if there is a competing offer being at least 5% higher and not matched by CFG within five days. Oslo and Lima-listed Copeinca is in a strong domestic position in Peru’s consolidating fish industry, with a 10.7% share of the catch quota for anchovy, which is processed into fishmeal. Rothschild and SEB are advising China Fishery.
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Copeinca Not Lured by CFG Offer
Peru’s Copeinca is not pleased with this week’s $556m unsolicited takeover offer from China Fishery Group (CFG), noting that key shareholders do not find the NOK53.85 ($9.39) per share offer attractive. Dyer Coriat Holding, with a 32.6% stake, and Weilheim Investments, with 6.0%, “don’t find the offer attractive, Copeinca says. Ocean Harvest, with 13.9% has not entered into an agreement with CFG, but is considering the offer. Copeinca is is the process of hiring advisers to evaluate its alternatives. CFG announced the bid Tuesday. If successful, it would make CFG the biggest player in Peru’s fishmeal and fish oil industry. The offer is subject to regulatory approvals and China Fishery securing more than half of Copeinca by April 12, although this deadline can be extended to May 23. CFG claimed shareholders owning about 14.2% of Copeinca have pledged to accept. It said it has also acquired an option for another Copeinca shareholder’s 10.8% stake. Oslo and Lima-listed Copeinca is in a strong domestic position in Peru’s consolidating fish industry, with a 10.7% share of the catch quota for anchovy, which is processed into fishmeal. Rothschild and SEB are advising China Fishery.
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Davivienda Takes Brokerage
Colombia’s Banco Davivienda has agreed to purchase brokerage Corredores Asociados for COP120bn ($66m) cash, it says, in the latest example of both Davivienda’s expansion and of the snapping up of the country’s local brokerages by larger powers. The payment could increase based on performance incentives, according to wire and local media reports citing remarks by Davivienda CEO Efrain Forero. The deal also includes Corredores’ Panama unit. The entities are not expected to merge operations for at least a year. Davivienda has a capital markets arm, used primarily to sell its own bonds and RMBS. Corredores, however, will give it a brokerage with a strong domestic equity capital markets operation. Corredores Asociados managed Davivienda’s most recent equity follow-on in 2011. Davivienda is Colombia’s third-largest bank and bought HSBC assets in Central America for $801m in 2012. In the Colombian brokerage sector, Thursday’s deal follows BTG Pactual’s purchase of 51% of Bolsa y Renta last year and BCP’s taking of a 51% stake in Correval in 2011.