Brazilian fuel distributor Ultrapar has agreed to acquire the Temmar port terminal from Noble Group, it says, for BRL160m ($80m). Under the terms of the sale, done through the Ultracargo unit, Ultrapar could pay an additional BRL12m-BRL30m, as a result of future storage capacity expansions in the next 7 years. The deal is subject to shareholder and regulatory approval. Temmar is located at the Itaqui port in the state of Maranhao. Over the last four years Ultracargo has acquired the Uniao Terminais at the port of Santos, and another terminal at Suape in the state of Pernambuco.
Category: M&A
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Australians Enter Chilean Mining Project
OZ Exploration Chile, a subsidiary of Australia’s OZ Minerals, has entered into an option agreement to acquire a 90% interest in the Copaquire project from International PBX Ventures for $90.3m, International PBX says. Under the agreement, OZ will make a small initial payment during a first stage of drilling in the copper-molybdenum project in Northern Chile, and be able to pay $10m for 10% in a second stage and $80m for another 80% after the second stage. The agreement is subject to shareholder and regulatory approval.
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Batista Continues Courting Strategics
Brazil’s EBX continues to generate interest from foreign strategic investors, with a $300m investment from GE, and more is expected on the way. The US-based conglomerate is purchasing a 0.8% stake in Eike Batista’s Centennial Asset Brazilian Equity holding vehicle, the companies say, and is paying a similar price level to that seen in a $2bn sale of 5.63% to Abu Dhabi sovereign wealth fund Mubadala Development Company in April. Bankers say that this type of private, pre-IPO investment is preferable for large strategic investors looking at growth and commodity plays in LatAm, and to the companies themselves during periods of uncertainty in the public equity markets. Sovereign wealth funds and other strategic buyers are being increasingly pitched with these opportunities. “This type of long-term minority real money is healthy [for the region]. The trend is initially financials and natural resources, but it should be followed by other sectors,” says a New York-based LatAm investment banker. He adds that infrastructure should receive much more investment, noting that it is already some of EBX’s makeup, and that some investors, such as Canadian pensions, have been making infrastructure plays for a long time. EBX plans to use proceeds to further enhance its capital structure and finance its pipeline of future investments. The companies claim a previous relationship, which includes GE supplying equipment to Batista companies’ projects. Neither side responded to a request for comment on its advisors. The price paid is proportionally similar to that paid by Mubadala, which at the time was seen implying a $35.5bn valuation for EBX and around a 40% premium to market value, according to some analysts, though measuring them is difficult given that only 5 of the 11 Batista units are public. Batista has publicly announced plans to list shares of gold miner AUX and real estate unit REX, and EBX itself could eventually be floated. Shares of Colombian coal miner CCX are to begin trad
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BBVA Considers Options for LatAm Pensions
Spain’s BBVA is considering selling all or part of its pension units in Chile, Colombia, Peru and Mexico, it says. Despite the attractiveness of the pension businesses, they don’t have sufficient overlap with the bank’s core consumer banking operations in those countries. The decision follows a trend of European, and particularly Spanish, banks selling down LatAm assets to revamp their capital structures ahead of tighter regulatory requirements. However, BBVA has not been engaging in selldowns to the extent that other banks, such as Spanish rival Santander, have in the past year. The process should last several quarters, and a sale is unlikely to come any time this year, the bank says.
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General Mills Buys Brazilian
General Mills has agreed to acquire Brazilian food products company Yoki Alimentos, it says. It does not disclose the price paid for the maker of the Yoki and Kitano brands, which booked BRL1.1bn ($542m) in sales in 2011. The two parties did not respond to requests for additional comment. General Mills is already active in Brazil, operating the Haagen-Dazs and Nature Valley Brands.
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Mexichem Reaches 95% of Wavin
Mexichem has increased its stake in Dutch plastic pipe maker Wavin to 95.7%, it says. Mexichem now will move ahead with plans to delist the company. The Mexican chemicals producer’s EUR10.50 ($13.30) per share offer was declared unconditional May 8, after it clinched 65% of Wavin’s outstanding shares. Mexichem has spent about EUR389 to increase its stake from an initial 22%. It is financing the acquisition with its own cash and through several credit lines.
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Qualicorp Expands
Brazil’s Qualicorp has agreed to buy a 60% position in a pair of businesses from health benefits manager Grupo Alianca, spending more than BRL100m ($49m), it says. It will pay BRL100m immediately for the stake in Alianca Administradora de Beneficios de Saude and GA Consultoria, Administracao e Servicos, and an additional amount in 2014, to be determined based on 2013 Ebitda. The units booked BRL251m in Ebitda in 2011, and Qualicorp claims to be paying a 9.5x Ebitda multiple. Alianca founder Elon Gomes de Almeida will hold 40% of the units, and keep his position as CEO. Qualicorp has the option to buy the remaining 40% after 5 years.
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Anglo and Codelco to Talk
Anglo American and Codelco have agreed to hold discussions aimed at resolving a dispute over ownership of Anglo’s Chilean unit, Anglo says. The two have requested a pause in their court proceedings until June 22, to allow for the talks. The two miners are fighting over Coldelco’s desire to exercise a decades-old option to buy 49% of the Anglo American Sur mine. Anglo agreed in November to sell 24.5% of the unit to Mitsubishi for $5.39bn, which Codelco saw as an attempt to block it from exercising its option fully.
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Duratex Expands in Colombia
Brazilian wood products maker Duratex has initiated the process through which it could buy up to 52% of Colombia’s Tablemac, it says, spending as much as $128m-equivalent. Duratex has agreed to buy 25% of the Colombian industrial wood panels specialist for $56m, or COP12.00 per share. In the next 10 days, it plans to launch a public offer to Tablemac shareholders for an additional 10-12% at the same price, spending up to $37m. Finally, Duratex can, within the next 2 years, opt to buy another 15% at the same per-share price adjusted by an annual rate of 6.25%. Tablemac has a market cap of COP249bn ($136m) and took in COP24.6bn in Ebitda in 2011.
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EcoRodovias Adds Port Assets
Brazil’s EcoRodovias has agreed to spend BRL540m ($268m) to purchase a stake in a set of container terminal and logistics assets at the Santos port, it says. In the deal, the infrastructure and logistics operator acquires 41.29% of Aba Porto, a holding vehicle for the Tecondi complex, from its owners. It also has the opportunity to acquire 100% of Aba within 12 months at the same per-share price. To fund the purchase, EcoRodovias plans to raise BRL550m in 1-year bonds in Brazil’s local market, in a transaction paying 108% of the DI and managed by BTG Pactual and Itau. The company does not respond to requests for additional comment.