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.
Category: M&A
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Next Generation
LatAm’s Generators and transmission companies face huge buildouts to meet electricity demand. The largest have broad access to funds, with development banks picking up the rest.
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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 […]
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Going South?
The YPF nationalization plans have spooked investors and multinational companies. What is the fate of Argentina’s issuers?
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Growing Pains
Agribusiness is pushing farmland prices higher and scaring politicians in its search for returns. Some operators are broadening their geographies.
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BG Unloads Chilean LNG Terminal
BG Group has agreed to sell its 40% stake in the GNL Quintero liquid natural gas (LNG) terminal to Spain’s Enagas for as much as $352m, the companies say. With the move BG completes an exit it has been contemplating since last year, and Endesa, controller of Enagas, boosts its position in Quintero to 60% and gains more access to LNG supply. Under a two-stage deal, BG plans to sell its equity in the regasification terminal in two 20%, or $176m, tranches, the second subject to partner and lender consents. The deal is expected to be completed by the end of the year. Santander advised BG. The other partners in the terminal are Enap and Metrogas, with 20% each. BG has long-term plans to sell $5bn of assets in the next two years to maintain investment and production growth in order to meet stronger demand for LNG.
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PacRu Enters Peru Block
Colombia’s Pacific Rubiales has agreed to buy 49% of a Peruvian offshore oil block from BPZ, it says. In the deal, Pacific Rubiales is to pay $150m cash, and is subject to a commitment of $185m for BPZ’s share of capital and exploratory expenditures in the block, known as Z-1. Once Pacific Rubiales has satisfied its commitment to BPZ in connection with the capital and exploratory expenditures, the partners will share costs at their respective ownership interest basis. Bank of America Merrill Lynch and GMP Securities advised Pacific Rubiales. Credit Suisse and Tudor, Pickering, Holt acted as financial advisors to BPZ.
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Quinenco Can’t Have Terpel: Regulators
Chile’s antitrust regulator has rejected Quinenco’s $315m purchase of fuel distributor Terpel Chile, it says, citing a risk of higher prices due to lack of competition. Colombia’s Terpel agreed to sell its Chilean operations in September for UF6.7m ($315m), and the Luksic group’s Quinenco had planned to incorporate Terpel in to the Shell Chile assets it had acquired earlier in the year. JPMorgan had advised Terpel and Santander did the same for Quinenco. Terpel has 200 gas stations and 97 convenience stores in Chile. Regulators are still making Terpel sell its Chilean assets because of its already-high participation in the fuel market.
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German Takes all of Brazilian Pharma
Celesio, the German drug distributor, is exercising its options to buy the 49.9% Brazil’s Panpharma it does not yet own, it says. It is making the move sooner than it had planned at the time of its initial acquisition. It does not give the value, though press reports put it at more than BRL600m ($319m). Celesio did not respond to a request for comment.
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Credicorp Enters Chile with IMTrust Deal
Peru’s Credicorp has laid another stone in its plan to build a trans-Andean platform, agreeing to a deal giving it 60.6% of Chilean investment bank IMTrust. The parent of Banco de Credito del Peru is paying a price equal to 3.5% of its equity, around $122m, according to a Credicorp investor relations official. Almost all of the transaction is to be paid for in cash, with a small portion in shares as a retention mechanism. The deal follows the acquisition of 51% of Colombia’s Correval, and positions BCP well in the race to capitalize on the growing economies in Colombia, Peru and Chile, and their market integration through the MILA initiative. BTG acquired Celfin last year with the same motive, and others are eyeing these markets. IMTrust is to maintain its existing organization, and its executives will remain in their current roles, Credicorp says. Credicorp did not use an external advisor in the deal, the official says. Separately, Fitch upgraded BCP’s credit rating to BBB+ from BBB. The outlook is stable.