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.
Category: M&A
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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.
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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.
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UNH Launches Tag-Along
UnitedHealth has opened a tag-along offer for outstanding shares of Brazil’s Amil, it says. The offer is open through April 23, and offers holders the same BRL30.75 per share price that the US provider paid to acquire 60% of Amil in October. UnitedHealth agreed to pay $4.9bn in the deal last year, seen as coming at more than 25x p/e at the time.
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Eike Indeed Looking to Sell MPX Stake
Brazil’s MPX has officially admitted controller Eike Batista is in discussions to sell a piece of the power generator, following intense speculation on the subject. Germany’s E.ON, which already owns a 12% stake, is thought to be a likely buyer of a larger piece. Batista owns 54% of MPX.
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Pacasmayo Open to M&A: CEO
Peru’s Cementos Pacasmayo continues to search for acquisitions, CEO Humberto Nadal tells LatinFinance. The cement company is currently open to targets of up to $600m-$700m, he says, and depending on the opportunities available, could look to execute on a deal this year. A purchase of more than $300m could possibly spur a return to the debt or equity markets. The Peruvian cement company has been selectively pursuing such deals since its follow-on equity sale last year, but has yet to find the right fit, he says, adding that it is looking broadly across Latin America. “I would seriously review South America or Central America,” he says, ruling out the US. Acquisitions are among his top priorities, he says. An attractive buy would not be 100% ready-mix, as it doesn’t match his market, where cement is most often sold in bags, he notes. Nadal notes that the Hochschild group-controlled company has solid cash flow generation and would have no problem returning to the capital markets if it had a specific acquisition in mind. The cement business is fairly consolidated in LatAm, but there are still some cement targets available, he says, adding that the company will look to diversify in geography but not product mix with the deal. In February, Pacasmayo generated $2.5bn in orders for its $300m international bond debut, winning a 4.625% yield well below initial expectations. Bank of America Merrill Lynch, JPMorgan and Banco de Credito del Peru managed the BB+/BBB minus deal.
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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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Grupo Security Expands
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.
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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.