Amil Participacoes has agreed to buy the HPP Saude healthcare arm of Portugal’s Caixa Geral de Depositos for EUR85.6m ($109.7m), Caixa says. The transaction was the result of a competitive process and includes an unspecified amount of debt. It is part of the bank’s larger strategy to unload its hospital assets. HPP operates seven hospitals throughout Portugal. Amil is set to become a unit of UnitedHealth, following the conclusion of a merger agreed last month, by which the US provider agreed to pay $4.9bn for 90% of Amil.
Category: M&A
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CFR Steps Back from India Buy
CFR Pharmaceuticals will withdraw its attempt to acquire 50% of India-based Stellence Pharmscience Private Limited, due to terms of its April 4 contract not being met, it says. It does not specify what the terms were, and the company did not respond to request for comment. The $21m deal was one of a number that the Chilean pharmaceutical player has made globally, alongside purchases of positions in Vietnam’s Domesco and Allergy Therapeutics in the UK. CFR counts 16 countries in Latin America among its 19-country footprint. CFR raised $368m-eqiuvalent in an IPO last year.
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Pacific Rubiales Adds in Colombia
Pacific Rubiales has agreed to acquire Toronto-listed oil and gas company C&C Energia, which gives it four development blocks in Colombia’s Llanos basin, near Pacific Rubiales’ existing operations, Pacific Rubiales says. In the deal, whose total value is not indicated, C&C shareholders receive Pacific Rubiales shares, as well as shares in a related new exploration company created with C&C assets. C&C is to transfer its Colombian exploration assets in the Putumayo and Middle Magdalena Basins and approximately $80m in cash to the new company, which benefits from “a prospective acreage position with several drill-ready prospects in 2013, a well-funded balance sheet combined with an experienced exploration and management team,” C&C says in a release. Pacific Rubiales is to pay C&C holders 0.3528 common shares and a common share of the new exploration company for each C&C share. The offer values C&C Energia at approximately CAD7.81 ($7.81) per share, representing a premium of approximately 21% to the 20-day volume-weighted price, Pacific Rubiales says, though it does not indicate how many C&C shares are involved in the transaction. Officials at both parties were not available for comment. C&C shares closed at CAD8.85 Monday. The transaction, subject to approvals, is expected to close early next year. GMP Securities and Norton Rose Canada advised Pacific Rubiales. C&C’s financial advisor FirstEnergy Capital, and its legal advisor Blakes, Cassels & Graydon in Canada and Posse Herrera Ruiz in Colombia.
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UK Insurer Expands with Uruguay Purchase
UK-based financial services firm Old Mutual has agreed to acquire a majority stake in AIVA, an Uruguay-based family-held business with over $800m under management, it says. The two have had a distribution relationship and been connected for more than 15 years, says Old Mutual, which plans to leverage AIVA’s broker relationships. Their shareholders had long been discussing ways to grow the partnership, say people familiar with the transaction. Old Mutual declined to elaborate further on its specific plans, the multiples, the deal value or the size of the stake, but names Colombia and Mexico as additional geographies of interest. No external financial advisors were used in the transaction. Old Mutual used Guyer & Regules Lawyers as a legal adviser, and AIVA used Ferrere Lawyers. The financial advisory industry has seen significant changes since 2008’s crisis, with financial advisors having to widen their scope of services, says a source familiar with the industry, adding that independent financial advisors are a growing trend, with the IFAs needing partners to provide back office support and other umbrella services. AIVA’s opportunities have grown along with this trend, making it an attractive target. The move is the latest in the FIG sector from a US or European entrant, following a slate of deals including Scotiabank’s pair of strategic buys in Colombia and Mexico, and asset manager Principal Financial agreeing to acquire Chilean pension fund manager AFP Cuprum.
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Rede Perp Holders Oppose Sale Plan
A group of investors representing more than 25% of Grupo Rede’s perpetual bonds have formed a group to oppose the process by which Brazil’s government is selling the troubled company’s assets. The holders claim that the government’s approach to selling the assets – exclusive negotiations with Equatorial Energia – diminishes the value received for them. “It is widely known that there are other highly qualified investors who are interested in the Rede assets. But these investors are not being given the chance to compete, or even the assurance that they will have that chance,” the group says in a statement. Brazilians including Energisa and Copel are among those who have publicly expressed interest, according to Brazilian news reports in recent months. Equatorial took control of Rede’s Celpa unit earlier this year under a similarly exclusive process, the group notes. The group claims that this type of action by the government will threaten international investment going forward, and that it “is considering its legal remedies, including acceleration of the notes.” Rede had announced plans to enter negotiations with holders earlier this year, until federal regulators intervened in the company. It is currently negotiating the sale of its operating companies, following the sale of Celpa. Rede issued $575m of the 11.25% perpetual bonds in 2007.
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EcoRodovias Sells Stake in Logistics Asset
EcoRodovias Infraestrutura e Logistica has agreed to sell its 50% interest in Ecopatio Imigrantes to Global Limited Properties for BRL104m ($50m). The buyer is a unit of Singapore’s GIC sovereign wealth vehicle. Incorporated in 2007, Ecopatio specializes in build-to-suit projects in the commercial and industrial property space in Brazil. It was held under the EcoRodovias logistic services subsidiary Elog, which plans to use proceeds from the sale for working capital and expansion.
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Southern Cross Adds Marine Transportation Stake
Private equity firm Southern Cross has agreed to invest $220m in Bahamas-based marine industrial transportation company Ultrapetrol, says Chile’s Sipsa, Ultrapetrol’s parent. The fund will buy 110m shares at $2.00 per share, and walk away with approximately 78.38% of the outstanding common shares. The agreement is subject to conditions, including a waiver by holders of certain repurchase rights related to Ultrapetrol’s 2017 bonds, and is expected to close in December.
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Strategics Team Up for Brazil Logistics
A group of strategic investors has agreed to spend BRL2.9bn ($1.49bn) to acquire a portfolio of Brazilian logistics facilities from asset manager Hemisferio Sul Investimentos. Canada Pension Plan Investment Board (CPPIB), Singapore’s GIC sovereign wealth fund, GIC’s Global Logistic Properties (GLP) unit and the China Investment Corp (CIC) will form a pair of joint ventures to own the commercial distribution properties, the parties say. It is the latest sovereign wealth vehicle movement into Latin America and one that highlights a diversification away from the natural resources and financial investments – most notably into EBX and BTG Pactual in recent years – that have characterized previous large sovereign buys, a trend which M&A bankers expect to continue. The purchase price includes BRL1.1bn in assumed debt. The transaction incorporates two joint ventures, the first acquiring a portfolio of 34 operating assets and one development project. GLP and CIC will each own 34.2%, with GIC 20.0% and CPPIB 11.6%. The second will hold five projects under development, and will be owned 41.3% by GLP, 39.6% by CPPIB and 19.1% by GIC. The second JV will require an investment of some $455m to develop. Both JVs are expected to generate returns of more than 18%. GLP is to manage all of the assets, 88% of which are concentrated in the states of Rio de Janeiro and Sao Paulo. GLP is to contribute $334m to the overall purchase price, and CPPIB $343m, while the other parties don’t disclose their contributions. Supply of logistics space in Brazil is around 6% of that in the US, GLP says, with approximately 80% of the market unable to meet modern logistics requirements. The transaction, which GLP claims is the largest-ever in Brazil in its sector, is expected to close in December. The parties declined to comment, or could not be reached for comment, on advisors. Each of the buyers is an experienced LatAm investor targeting the consumer demand play. GIC has made notable investments in Braz
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Eletrobras Takes Over Utility
Brazilian state-owned utility Eletrobras plans to take over bankrupt northern Brazilian utility Companhia de Eletricidade do Amapa (CEA), it says. The companies agreed with the government of Amapa, CEA’s controller, that CEA will receive financing from Brazil’s federal government to pay off CEA’s debts to Eletrobras and other suppliers. Eletrobras plans to replace CEA’s management, and does not state how much it expects to pay.
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Chilean Casino Gambles on Uruguay
Chilean casino and hotel operator Enjoy has agreed to acquire 45% of Baluma, a subsidiary of Caesars operating the Conrad Punta Del Este Resort in Uruguay, for $139.5m in cash and stock. In the deal, US-based Caesars gets shares equal to a 10% position in Enjoy, to be issued through a capital raise held before the deal closes. Enjoy may also, between years three and five, acquire the rest of Baluma. Caesars will also nominate an Enjoy board member. Caesars extended Conrad’s gaming license through 2036 in May, the company says. Conrad generated $157m in net revenue in 2011. Enjoy was advised by Deutsche Bank. Further details on advisors and transaction multiples were not disclosed. The closing remains subject to approvals.