Mexichem has passed the threshold of 80% ownership in Dutch plastic pipe maker Wavin needed to delist the company. Following Monday’s close of a public tender offer, Mexichem had acquired 32.8m shares, representing 64.74% and a value of EUR345.2m ($449m), bringing its total ownership to 87.42%. The Mexican chemicals company is paying EUR10.50 a share, which Wavin accepted in February after previous lower offers, in a deal that is costing Mexichem EUR531m total. Mexichem is financing the acquisition with EUR520 from its own cash and the rest through several credit lines. Mexichem will seek to delist Wavin, it says.
Category: M&A
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Camargo Correa Details Cimpor Bid
InterCement, the cement unit of Brazil’s Camargo Correa, plans to offer Votorantim Cimentos an asset swap to buy Votorantim out of Cimpor, and would also keep the Cimpor name if it gains the full control of Cimpor it seeks, InterCement says. Though InterCement is sticking to a EUR5.50 per share bid for Cimpor, implying a EUR2.4bn ($3.1bn) maximum price, it notes Cimpor would remain a Portuguese company, with the same brand. Noting that Cimpor’s ownership is fragmented, InterCement would unify all of its cement operations under Cimpor if its bid is successful. InterCement would first transfer to Cimpor all of its assets in South America and Angola, in exchange for most of Cimpor’s assets in China, Spain, India, Morrocco, Tunisia, Turkey and Peru. InterCement would then offer those international assets to Votorantim, in exchange for its 21.2% of Cimpor’s shares. Camargo Correa claims to have discussed the matter with Votorantim, and says there is a “very strong possibility” that Votorantim would accept. InterCement announced in April the offer for the 444m (66.75%) shares it doesn’t own in Cimpor. Cimpor later said the offer was too low, and lacked enough detail.
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Sonda Scoops Up Brazilian Specialist
Chilean IT provider Sonda has agreed to acquire Brazil’s Elucid Solutions for BRL140m ($73m), it says. Euclid, a software provider, reported income of BRL123m in 2012, and counts 25% of the country’s electric power distributors among its clients. The transaction is part of Sonda’s $500m 2010-12 investment plan, and is its fifth purchase since 2009. Sonda has a presence in Chile, Brazil, Argentina, Colombia, Costa Rica, Ecuador, Mexico and Uruguay.
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Terpel to Fight Chile Antitrust Decision
Terpel Chile plans to appeal to the country’s Supreme Court the decision by antitrust regulators to block its sale to Quinenco, its Colombian parent says. The UF6.7m ($315m) sale of Terpel Chile to Quinenco agreed last year was overturned last month by authorities, who cited a risk of higher prices due to lack of competition. JPMorgan had advised Terpel and Santander did the same for Quinenco. Terpel has 200 gas stations and 97 convenience stores in Chile. Regulators had said Terpel must still sell its Chilean assets because of its already-high participation in the fuel market.
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Plural Adds Brokerage
Brazil’s Plural Capital has bought the Geracao Futuro brokerage for BRL150m ($79m), it says. The addition allows the Brazilian boutique and asset manager to expand into retail brokerage. Plural executives Eduardo Moreira and Rodolfo Froes will join Geracao as co-heads after the central bank approves the purchase. Geracao has about BRL6bn in assets.
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Itau Portugal Unit Unloads Stake
Itau’s IPI-Itausa Portugal Investimentos has sold an 18.87% stake in Potrutgal’s Banco BPI to Spain’s CaixaBank, Caixa says. At Friday’s EUR0.40 close the 186.84m shares in the deal would be worth EUR74m ($97m). Caixa now owns 48.97% of BPI.
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Kirchner Signs YPF Takeover, Names CEO
Argentina’s President Cristina Kirchner has signed the bill to o expropriate 51% of YPF’s stock from its majority shareholder, Spain’s Repsol YPF, after the legislation was approved in congress, her office says. Miguel Galuccio, a former YPF official most recently at US oil services company Schlumberger, has been named as CEO.
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Cosan Continues Diversification with Comgas Buy
Cosan has agreed to pay BRL3.4bn ($1.79bn) for the 60.1% of Brazilian gas distributor Comgas owned by BG Group, it says, following discussions announced earlier this month. The deal marks an entry for Cosan into gas distribution, as it continues expanding from sugar and ethanol into fuel distribution and transport both inside and outside Brazil. The price implies an EV/Ebitda multiple of 6.5x, a Cosan official says, adding that it has obtained a BRL3.3bn 8-year loan with a 2-year grace period from Bradesco and Itau to fund the purchase. Analysts note that it is difficult to say whether the valuation is high or low, as this is an atypical deal. “The positive is it increases their diversification. However, they are taking on debt to do it, which might delay their goal of being investment grade,” says one analyst covering Cosan. Much remains to be seen in the details of plans for integrating the acquisition and deleveraging, he adds, noting Cosan deserves the benefit of the doubt due to its strong track record. The 60.1% stake represents 73.4% of the Comgas common shares and 11.8% of the preferred shares. The deal continues BG’s strategic sales of assets in the region, and follows the British company’ unloading of 40% of Quintero LNG in Chile on Monday for $352m. BG aims to raise $5bn through divestments in the next two years. The deal is subject to shareholder approval and should be completed this year. Shell – Cosan’s partner in a fuel distribution JV – holds 18% of Comgas, with the remainder in a free float. Skadden represented Cosan, the firm says, and BTG Pactual provided a fairness opinion. BG declines to comment on its advisors.
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Genomma Gives Up on Prestige
Genomma Lab has decided not to continue with its attempt to buy US healthcare and cleaning brands company Prestige Brands (PBH), it says. Prestige has told the Mexican pharmaceuticals company it would need a “significant increase” to the $16.60 per share, or $834m total, unsolicited offer Genomma originally made in February, Genomma says. Prestige had previously indicated the offer was too low, and also adopted a shareholder rights plan, better known as a ‘poison pill’, in an attempt to block the move. The offer represented an implied 9.5x Ebitda multiple in a best-case scenario, and likely undervalued Prestige’s shares, Janney Capital Markets said at the time. Genomma notes it had obtained a commitment for up to $2.2bn in financing for the deal. PBH owns more than 50 brands, including Comet, Compound W, Efferdent, Dramamine, and Spic And Span.
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Hyatt Adds in Mexico
Hyatt Hotels has agreed to acquire the Hotel Nikko Mexico in Mexico City for $190m from Japan-Mexico Hotel Investment. The deal for the 38-story luxury hotel is scheduled to close in May, and the property will be rebranded as the Hyatt Regency Mexico City. Hyatt plans to invest about $40m in a 3-year renovation for the Polanco hotel, to be Hyatt’s fourth in Mexico.