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company it would need a “significant increase” to the $16.60 per share, or $834m total, unsolicited offer Genomma originally made in February, Genomma says.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.
Category: M&A
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.
Bolivia Nationalizes Grid
Bolivia’s government has issued a decree nationalizing its electricity grid, it says. The government’s Empresa Nacional de Electricidad (ENDE) is to absorb 99% of the shares of Empresa Transportadora de Electricidad, which are owned by Spain’s Red Electrica. An independent auditor will set compensation to be paid to the Spanish company within 180 days. The move follows Argentina’s plan to nationalize YPF, controlled by Spain’s Repsol. It also comes as Bolivia was preparing to issue a $500m international bond to reintegrate itself into the international financial community.
US Fuel Payment Processor Enters Brazil
FleetCor Technologies has agreed to acquire Brazil’s CTF Technologies for $180m, it says. CTF provides fuel payment processing services for road fleets, ships, mining equipment, and railroads, and claims Bradesco, Itau, Petrobras and Ipiranga as clients. CTF earns revenue primarily from a recurring transaction fee paid by the oil companies who purchase the CTF system for their fleet customers under multiyear contracts. The deal marks an entrance into Brazil for FleetCor, which already operates in Mexico. Georgia-based FleetCor provides fuel and specialized payment products with a focus on the oil industry.
Fibra Adds to Trust
Fibra Uno has agreed to acquire 220 properties from Santander Mexico for MXP3.33bn, it says. A 20-year sale-leaseback deal with Santander will see the Mexican real estate income trust earn MXP275m per year. It has also agreed to invest MXP100m in improvements to the portfolio. Fibra Uno raised MXP8.88bn ($699m) in a follow-on transaction earlier this year to raise funds for acquisitions. The deal comes at a time when Santander Mexico’s Spanish parent is looking to raise funds to help its balance sheet. An IPO of the unit this year in the planning stages, bankers say.
Itau Sticks to Redecard Offer
Itau plans to stick to its offer of BRL35.00 ($18.32) for each outstanding share of Redecard, it says, in a bid to de-list the credit card processor. The decision comes after minority holder Lazard Asset Management asked for an independent evaluation of the company. The Brazilian bank won’t raise the offer, originally announced in February, however even if the second opinion indicates a higher value. Itau, owner of 50.01% of Redecard, would look to sell its stake if it can’t get 100% of Redecard through the offer. Itau is advising itself in the process.
Rubiales Signs Asian Farm-in
Pacific Rubiales has agreed to purchase up to 10% of an onshore oil project in Papua New Guinea for as much as $345m, it says. The Canadian-Colombian oil company is to pay the InterOil Corporation $116m up front, to be followed by the funding of an agreed exploration work program, and cash payments based on the independently certified resources of the project, known as Triceratops. In all, the investment could reach $345m. Interoil remains the operator of the project, though Pacific Rubiales will have an active advisory role. It expects to fund its share of capital expenditure from its internally generated cash flow. The deal follows last week’s announcement of a $150m agreement to purchase 49% of a Peruvian block from BPZ.
Betting on Eike
Brazil once again made headlines when Abu Dhabi sovereign wealth fund Mubadala Development Company paid $2 billion for a 5.63% stake in billionaire Eike Batista’s EBX Group. The purchase was […]
Going South?
The YPF nationalization plans have spooked investors and multinational companies. What is the fate of Argentina’s issuers?
Growing Pains
Agribusiness is pushing farmland prices higher and scaring politicians in its search for returns. Some operators are broadening their geographies.