Mexico’s Grupo Aeroportuario del Pacifico (GAP) has managed to secure a number of legal provisions in hopes of preventing Grupo Mexico from taking over the company. GAP says its legal team managed to include 4 main provisions in the legal case that the company has launched against Mexican brokerages acquiring GAP shares in the open market. The new provisions demand that brokerages respect GAP’s statutes which forbid any shareholder from owning more than a 10% stake in the company. They also compel brokerages to refrain from any trading scheme that could give any person or group a position of more than 10%, especially Grupo Mexico which already controlled 33.8% of GAP as of January. Grupo Mexico has voiced its intention of buying an additional 30% in GAP, which operates a dozen airports in Mexico’s Pacific region. Grupo Mexico originally launched a tender offer of MXP50.00 per share of GAP in June 2011, seeking at least a 51% stake in the airport operator.
Category: M&A
Brazilian Banks Lead Charge
Brazil’s financial sector led the charge on the M&A front in February after the conclusion of two large acquisitions at home and abroad. Itaú Unibanco arguably made the largest splash […]
Crude Rush
Major oil companies are falling over themselves for a piece of Brazil’s oil-rich future. But with new offshore licenses on hold, getting assets is neither cheap nor
Paying Top Dollar
Colombia’s expensive and expansive banking system is enjoying its salad days. More and pricier M&A deals may still be on the horizon.
Prestige Brands Takes Poison Pill in Genomma Lab Offer
Prestige Brands Holdings (PBH), a US healthcare and house cleaning products company, has moved to adopt a shareholder rights plan, following last week’s hostile takeover bid by Mexican pharmaceutical marketer Genomma Lab. The PBH board adopted the plan, a strategy better known as a “poison pill,” after Genomma offered to acquire the company’s outstanding shares at $16.60 per share. The aim is to “allow the board of directors adequate time and opportunity to explore, develop and consider any and all alternatives,” the company adds. A poison pill typically dilutes a buyer obtaining a certain percentage of a company, a move that prevents the acquirer from sidestepping a negotiation with a target’s board and dealing directly with shareholders. PBH has not made public the details of its shareholder agreement, but says it will expire after the 2013 annual meeting. Officials at Prestige Brands could not immediately offer additional details. Genomma Lab could not be reached for comment. Last week, Genomma unveiled an offer to shareholders of $834m for the company’s equity, as well as assuming $891m in debt. Overall, the deal implied 9.5x Ebitda, according to calculations by Janney Capital Markets, which deemed the transaction “dubious.”
Venezuela Sells Oil Stake to China’s Citic
PDVSA has agreed to sell a 10% stake in the Petropiar heavy oil upgrading project to Citic Group, China’s state-controlled investment company. The Venezuelan state-owned oil company does not disclose the value. The deal gives Citic an entry into one of four heavy crude upgrading ventures located along the oil-rich Orinoco river basin. Currently, Petropiar, formerly known as Ameriven, is 70% owned by PDVSA, with the US’s Chevron holding the remaining 30%. Officials at PDVSA and Citic could not immediately be reached for additional details about the agreement. During the summer of 2007, Venezuela nationalized the 40% stake that US major ConocoPhillips held in the venture, a move which resulted in PDVSA’s current 70% share. Under the deal signed with Citic, the Venezuelan company will offer the 10% stake from its own participation in the venture, leaving PDVSA with 60%, Citic with 10% and Chevron with its current 30% stake. Allowing the Chinese into the country’s most prized oil ventures comes as the country has become increasingly reliant on financing from China over the past few years. The deal comes after Venezuela signed a $10bn financing agreement with the Chinese government to support oil projects.
QGEP Gets Regulator Nod for Santos Buy
Brazil’s Queiroz Galvao Exploracao e Producao (QGEP) has received regulatory approval to proceed with the $157.5m acquisition of Shell’s 30% stake in the BS-4 block in the Santos basin. As agreed, the oil company will become the field’s operator and will join Petrobras (40%) and Barra Energia (30%) as partners in the deal. A QGEP investor relations official says the company used no advisors. So far the company has not yet released the reserve data as it expects to certify the block’s holdings later on this year, the official says. However, the company estimates that the block holds roughly 2bn barrels of post-salt contingent resources and makes a rough assumption of a 16% recovery factor. QGEP officials have made it clear in the past that the company is looking to grow its business through farm-ins and other opportunities that oil companies make available. The newly-acquired block is a promising prospect for potential pre-salt discoveries as it sits close to the Libra and Franco fields.
Volcan Adds Hydro Plant
Canadian miner Dias Bras Exploration has agreed to sell the Huanchor Hydroelectric power plant to Peruvian miner Volcan Compania Minera for $46.8m. Dias Bras’ subsidiary Minera Corona has signed a memorandum of understanding with Volcan for the sale, the company says. As structured, Dias Bras will receive $24.5m from the sale, in line with its 81.7% stake in Corona. Dias Bras’ core business focuses on Peru’s Yauricocha mine which it will continue to develop using the funds from the sale of the non-core hydroelectric assets. A spokesman for Dias Bras did not return calls for comment. Officials at Volcan could not be reached for additional details of the purchase. The acquisition of the 19MW Huanchor plant fits well with Volcan, which already owns several hydroelectric power plants in the Andean country.
Cathedral Energy Sells Venezuela Assets to PDVSA JV
Canada’s Cathedral Energy Services has struck a joint venture agreement with PDVSA, and plans to sell and lease a number of its own assets to the newly formed Vencana Servicios Petroleros venture. The JV is to be 40% owned by Cathedral, with the rest controlled by PDVSA, Cathedral says. Under the deal, Cathedral will sell its operations in the Venezuelan city of Maturin to the new venture, including buildings and various types of equipment, and will also lease Vencana its measurement-while-drilling equipment. Officials at Cathedral and PDVSA could not immediately be reached for comment. Payment for Cathedral’s assets will be 60% in cash and will come from PDVSA, while the remaining payment will be taken as Cathedral’s contribution to the new venture in exchange for its 40% participation. The company notes that PDVSA will have several payment milestones but it offered no details of dates or amounts. The Vencana venture is expected to devote its efforts to increasing directional drilling.