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representing a total of 25% have either provided pre-acceptances entered into option agreements, both of which may be withdrawn, if there is a competing offer being at least 5% higher and not matched by CFG within five days.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.
Category: M&A
Mexican Bolsa to Get Slice of Lima Exchange
The Bolsa Mexicana de Valores has signed an agreement with the Bolsa de Valores de Lima for a stragtegic partnership, in which the Mexican bourse will buy 5.9% of its Lima peer, the Mexican Bolsa says. It does not give a value. The strategic agreement includes working jointly to develop the two markets and expand the offering of products.
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.
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.
ING Lowers SulAmerica Stake
ING has agreed reduce its stake in Brazilian insurer SulAmerica Seguros e Previdencia, SulAmerica Says, selling a 7.2% piece to the controlling Larragioti family. The deal has a value of around $200m, based on ING’s claim that the 28.8% it is left with has a value of EUR620m ($816m). ING is evaluating options for the divestment of its remaining stake, it says. The deal includes a share swap. ING has been an investor in SulAmerica since 2002. The transaction is subject to regulatory approvals and expected to close in the second half of the year. ING exited most of its Latin American pension business in 2011, raising about $3.5bn from a sale to Grupo Sura.
M&A: BBVA continues pensions exit
BBVA continues to dispose its LatAm pension businesses, with the $2 billion sale of its Chilean AFP Provida unit in February. That followed the $530 million sale of Horizonte in Colombia in January. The Spanish bank has sold three LatAm pension funds, with only its Peru operation remaining.
Glencore Buys into Brazilian Miner
Glencore has bought an unspecified minority stake in Brazilian iron ore miner Ferrous Resources, Ferrous says, through private transactions with shareholders. Separately, the Swiss commodities trader and miner has agreed to buy 20m tons of iron ore from Ferrous over four years. The capital injection comes after Ferrous’ failed attempts to raise funds in the equity capital markets.
China Fishery Casts Line in Peru
China Fishery Group has made a $556m offer for the shares of Peruvian fishmeal and fish oil exporter Copeinca, paying a premium in a deal that would make it the strongest player in the country’s consolidating fish sector. The unit of Pacific Andes International Holdings is offering NOK53.85 ($9.44) per share for the Oslo and Lima-listed Copeinca, Peru’s second-largest fishery. The offer represents a 17.7% premium to the previous NOK44.30 closing price. Shares closed up Tuesday at NOK56.25. “This marks a turning point in the industry. If nothing else, other local players will consider more thoroughly selling to Chinese or other foreign buyers,” says a LatAm M&A banker away from the deal, noting that rumblings of this move began last year. 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. China Fishery claims shareholders owning about 14.2% of Copeinca have pledged to accept its offer. It has also acquired an option for a Copeinca shareholder’s 10.8% stake. Copeinca is in a strong domestic position, with a 10.7% share of the catch quota for anchovy, which is processed into fishmeal. China Fishery said it plans to raise between SGD344m-SGD353m ($277m-$285m) to help fund the deal, and will use loans and internal funds to pay for rest of the acquisition. In the rights offer, China Fishery holders can subscribe to 1.02bn-1.05bn new shares at SGD0.34 each. If the Copeinca acquisition falls through, the company will use the proceeds to repay loans, supplement working capital and fund expansion plans. Rothschild and SEB are advising China Fishery on the Copeinca offer, while DBS Bank and Standard Chartered are the handling the rights issue. Rabobank and DBS are to provide a $295m bridge loan. US private equity firm Carlyle has an 11.1% stake in China Fishery.
Vigor Adds Dairy Co-op
Brazil’s Vigor Alimentos has agreed to pay BRL410m ($208m) for a 50% stake in dairy cooperative Itambe, according to J&F, Vigor’s holding company. Itambe has 31 member units in the Brazilian states of Minas Gerais, Sao Paulo and Goias. The transaction is subject to regulatory approval. BTG Pactual is heard advising J&F, also the holdco for meatpacker JBS.
AB InBev Hopeful on Modelo Deal
Anheuser-Busch InBev (AB InBev) says it is in talks with the US Department of Justice to resolve the lawsuit seeking to block the purchase of Grupo Modelo, it says, and has asked to suspend the litigation until March 19. The global brewer is hoping its agreement announced last week to sell to sell a Mexican brewery and control of the Corona brand in the US to Constellation Brands for $2.9bn will satisfy regulators. The government is worried that the combination of Ab InBev and Modelo would control too much of the US beer market. Analysts expected that the $20.1bn deal agreed last year to buy the remaining 50% of the Mexican Brewer could proceed following last week’s Constellation agreement.