Grupo de Inversiones Suramericana (Sura) has agreed to sell 7.51% of the Proteccion pension fund to Alberta Investment Management (AIMco), it says, for a total of COP134bn ($75m). The deal includes the transfer of 1.9m shares to AIMco’s Cornerstone unit, at a price of COP70,000 per share. Upon completion, Sura will own 49% of Proteccion through direct and indirect holdings. Proteccion shares closed at COP69,980 Monday.
Category: M&A
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Totvs Adds Developer
Brazil’s Totvs has agreed to buy W&D Participacoes, a holdco for two retail-focused software developers, it says, for up to BRL95m ($47m). The acquisitive IT provider is to pay BRL80m, and will make an additional payment of up to BRL15m that is dependent on the target’s results this year. The deal remains to be approved by Totvs’ shareholders. W&D owns the PC Sistemas and PC Informatica brands. Totvs did not use an external advisor for the deal, which is to be funded with its own cash, according to a company official.
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Axtel Exchange Reaches 65%
Mexico’s Axtel has received acceptance from holders of 65% of the debt it is targeting in a bond exchange offer, it says, following the completion of the early acceptance deadline. In the offer scheduled to expire today, the telecom is targeting its outstanding 7.625% 2017 and 9.000% 2019 bonds. It is offering $594.61 per $1,000 principal, comprised of $500 in senior secured 2020 bonds, $44.61 in peso-denominated dollar-indexed 2020s and $50 cash. Holders accepting before the early deadline receive an additional $116 per $1,000 principal. The 2020 notes start at 7.0%, stepping up to 8.0% after the first year and 9.0% after year two. Axtel is rated Caa2/CCC+/B minus. The company also announced it has agreed to sell 883 telecommunication towers to MATC Digital, a subsidiary of American Tower Corporation, for $250m. In the deal, Axtel is to lease back space on these telecommunication sites from American Tower for initial minimum lease terms of 6-15 years.
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Japanese Insurer Adds in Brazil
NKSJ has increased its stake in Brazil’s Martima Seguros, it says, at a cost of BRL200m ($98m). The Japanese insurance group acquires 37% of Maritima’s common shares and 21.8% of its preferred shares, to bring its total holding to 87% of common shares and 92.1% of preferred shares. Through its Yasuda Seguros unit, it bought the shares from members of the Vidigal family. NKSJ first bought a position in Maritima in 2009. The deal is subject to regulatory approvals and expected to close by May.
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Provida Sheds Peru Stake Ahead of Sale
Chile’s AFP Provida has approved the transfer its 15.87% stake in Peruvian pension fund AFP Horizonte to parent company Grupo BBVA. The move comes at a price of PES183m ($71m), and streamlines the Chilean asset for its eventual sale. BBVA is undergoing a process started last year to rid itself of pension fund operations in four LatAm countries. Earlier this month it sold the AFP Horizonte in Colombia to Grupo Aval for $530m, and last year sold its Mexican operation to Banorte for $1.73bn. Both the Chilean and Peruvian assets remain on the block. Goldman Sachs has been advising BBVA on the sale process.
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AMX Moves for CIE Media Division
America Movil has agreed to acquire the Corporacion de Medios Integrales unit of Mexico’s Corporacion Interamericana de Entretenimiento (CIE), the companies say. The Mexican telecom is paying MXP1.67bn ($132m) for the advertizing and publicity specialist. CIE will use the proceeds to repay debt and for working capital. The transaction is expected to close in 2Q 2013.
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SABMiller Unit Sheds in CentAm
SABMiller subsidiary Cerveceria Nacional has agreed to sell its milk and juice business to Costa Rica’s La Cooperativa de Productores de Leche Dos Pinos for $86m, SABMiller says. Panama-based Cerveceria Nacional diversifies away from what it calls a “legacy asset” and says handing off the milk and juice business will allow it to center on its beer and carbonated soft drinks operations. The transaction is subject to regulatory approvals. Ernst & Young advised Dos Pinos, with Morgan & Morgan as legal counsel. Arias, Fabriga & Fabriga was legal counsel to Cerveceria Nacional.
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BdB Targets Bigger Banvor Position
Banco do Brasil (BdB) and Banco Votorantim are studying the possibility of the government-backed lender buying additional shares in Banco Votorantim, Banco do Brasil says. Banco do Brasil holds 49.99% of the voting shares and 50% of the preferred shares Banco Votorantim, and is considering acquiring additional preferred shares. No specific target was discussed. BdB has used its position in Votorantim to expand in auto loans, paycheck loans and credit for mid-size companies. A larger piece might also be away to build up BdB’s investment banking activity.
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KOF Adds Bottler
Coca-Cola Femsa (KOF) continues its consolidation drive in Mexico with an agreement to buy Grupo Yoli in a MXP8.81bn ($700m) deal. The transaction includes Yoli receiving 42.4m newly issued KOF shares, valued at MXP180 each, subject to final adjustments, and KOF assuming MXP1.01bn in debt. KOF also picks up 10% of Promotora Industrial Azucarera, bringing its holding in the sugar producer to 36%. “We consider the transaction to be positive for [KOF], getting a presence in more territory and in two of the most important tourist destinations in Mexico, Acapulco and Ixatpa-Zihuatanejo,” Monex says in a note. The shop finds a 10.8x Ev/Ebitda multiple for the deal that is in line with KOF’s average for deals in the last three years. The addition of the southern Mexican family-owned bottler follows the agreement to buy a 51% stake in Coca-Cola’s Philippines bottling unit for $689m last month, and a string of previous acquisitions in Mexico. Yoli generated sales of more than MXP4bn in 2012. The transaction is subject to regulatory approval. Deloitte and Raz Guzman Abogados advised KOF, and Proyectos Financieros Especializados and Creel Garcia-Cuellar Aiza y Enriquez advised Yoli.
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Herdez Makes Food Buy
Grupo Herdez has agreed to acquire 67% of Mexican health and nutrition food company Grupo Nutrisa’s shares for some MXP3bn ($238m), according to people familiar with the matter. The deal, subject to approvals, comes at MXP91.00 per share. Herdez will seek to acquire the remaining shares via a public offering, it says. It plans to use a 2-year loan from Banco Inbursa to help fund the purchase. Nutrisa and Herdez decline to name advisors or provide additional information on the terms. Nutrisa shares closed at MXP84.50 Thursday.