Category: M&A

Brazilian shopping center administrator BR Malls Participacoes is planning a perpetual bond issue to fund acquisitions. The size is understood to be at least $100m. A roadshow will start next week, stopping in the US, Europe and Asia. The BB minus bond issue will be BR Malls’ first international debt sale. Earlier this month, it raised BRL600m from a primary share offering. In July, the company sold BRL320m in debentures. Citi and UBS are leading the perp.

Brazilian shopping center administrator BR Malls Participacoes is planning a perpetual bond issue to fund acquisitions. The size is understood to be at least $100m. A roadshow will start next week, stopping in the US, Europe and Asia. The BB minus bond issue will be BR Malls’ first international debt sale. Earlier this month, it raised BRL600m from a primary share offering. In July, the company sold BRL320m in debentures. Citi and UBS are leading the perp.

Brazilian poultry and pork producer Perdigão and Eleva Alimentos are in talks about a potential merger. The country’s number two poultry producer held talks with larger rival Sadia in 2006, but no merger materialized.

Brazilian poultry and pork producer Perdigão and Eleva Alimentos are in talks about a potential merger. The country’s number two poultry producer held talks with larger rival Sadia in 2006, but no merger materialized.

Aluprint, the Mexican packaging company, is looking to raise $135m in syndication to pay for its acquisition by JPMorgan’s One Equity Partners, has apparently given prospective participants the option to lend in either dollars or pesos, depending on what is more convenient. The deal will pay on a leverage grid, which at the lowest level of 2.00x pays 225bp over TIIE or Libor, and at the highest level of 4.25x leverage, pays 375bp over, according to a banker away from the deal. The company is looking for a $120m senior secured term loan and a $15m credit line. The transaction is heard to have grabbed the interest of at least one MLA so far. GE Capital is leading.

The third quarter, during which $34.5bn in M&A deals were announced, was the busiest quarter for LatAm on record since Q1 2000, when $34.8bn in deals were announced, according to Dealogic, which also treats privatizations and concessions as M&A. Year to date, LatAm takeover activity totals $76.2bn across 899 deals, compared to $72.3bn across 619 deals during the same period in 2006. Brazil is the most targeted nation in the region, with $35.2bn via 329 deals, followed by Mexico with $13.7bn via 130 deals.

Following rumors of a deal, Royal Bank of Canada has announced a $2.2bn acquisition of RBTT Financial Group. RBTT’s board has approved the transaction, worth TTD13.8bn, and shareholders will vote on the TTD40 per share offer, paid in cash (60%) and RBC shares (40%). The combined entity will boast $13.7bn in assets and 130 branches in 18 Caribbean countries and territories. RBTT had been in discussions with potential buyers since April and suitors include Canadian rivals Scotiabank and CIBC, through its FirstCaribbean unit. RBC says the offer represents an 18% premium on the closing price of RBTT shares September 28, as well as a 27% premium to the average share price of TTD31.44 over the last 12 months. The transaction is expected to close by mid-2008 and the merged entity will be headquartered in Port of Spain. “This is a transformational acquisition for RBC in the Caribbean, one that extends our reach into many important markets, notably Trinidad and Tobago, Jamaica, and the Dutch Caribbean,” says Peter Armenio, RBC’s head of US & International Banking. Credit Suisse was the advisor to RBTT and had been working with the institution for a while. Merrill Lynch was hired to give RBTT a fairness opinion.