Carlos Fadigas has been approved as CEO of Braskem by the petrochemical company’s board, it says. He replaces Bernardo Gradin, who announced last month he planned to step down. Fadigas had been head of Braskem America, as Sunoco Chemicals was renamed following a $350m acquisition by Braskem in February. He was instrumental in negotiating the acquisition as CFO, the post he had held from 2006 until taking over Braskem America.
Category: People
Posted inDaily Brief
Gruma CEO Exits
Juan Fernando Roche, CEO and president of Gruma, has resigned, the Mexican tortilla maker says. CFO Joel Suarez will replace Roche, who had been in the role since January 2006. Roche is leaving for personal reasons, Gruma says.
Posted inDaily Brief
Chocolates Sweet on Buys
Colombian food conglomerate Grupo Nacional de Chocolates (GNC) is considering acquisition opportunities and may announce a deal as soon as next month, CEO Carlos Enrique Piedrahita tells LatinFinance. “In 2005 we established a goal of doubling our sales by 2010 and we have achieved that. Now we want to triple 2005’s sales by 2015 and we plan to do this via acquisitions and organic growth,” he explains. Tripling 2005’s sales would require generating COP6.9trn ($4.0bn) in revenue, according to company documents. Acquisitions will most likely occur outside of Colombia. “Our strategic focus is on the US, Mexico, Central America, the Caribbean and the Andean region,” Piedrahita says, adding that while Brazil is not considered within its strategic focus, GNC has looked at opportunities there. Piedrahita also says that GNC will focus on companies with revenues between $50m-$500m and that acquisitions will likely be financed with a mixture of cash on hand and debt. “If we were to make a larger acquisition we would consider issuing shares or bonds,” he explains. In September, GNC announced its purchase of US-based Fehr Holdings for $84m, for which it retained Stephens Cori.
Posted inDaily Brief
Interacciones Bond Pricing Widening
Price expectations on Mexico’s Banco Interacciones have widened to 130bp-150bp over TIIE, for its MXP1.5bn 3-year unsecured bond, according to the bank. Interacciones CEO, Gerardo Salazar, had previously told LatinFinance it would look for a spread of flat to 85bp over TIIE on a 13-36 month bond. The bonds are rated A1 on a national scale. Interacciones is targeting institutional and high net worth Mexican investors with the deal, from a senior debt program of up to MXP10bn. Interacciones expects to price the bond November 30. Interacciones and HSBC are joint leads on the deal. The bonds will be used to finance the expansion of its credit portfolio. It will also issue MXP650m in 10-year subordinated debt before December 15, in a self-led deal, adds the bank. The price guidance is in the 200bp over TIIE area. Salazar had previously told LatinFinance that Interacciones would pay a minimum of 175bp over TIIE. Proceeds from the bond sale will fund tier 2 capital to strengthen its capital base. Grupo Interacciones specializes in sub-national and public infrastructure financing in Mexico.
Posted inDaily Brief
Ultrabursatiles Plans Colombia PE Fund
Colombia-based brokerage Ultrabursatiles is launching a private equity unit, Ultracapital. Its first fund will acquire and lease commercial real estate, CEO Susana Gomez tells LatinFinance. “We expect to raise COP200bn ($109m) and to have a first closing in February,” Gomez says. Ultrabursatiles will begin marketing the fund this month and will approach local and foreign institutional investors, she says. A portion of proceeds from the leases will go to repay investors. Gomez, who expects returns of about 9% per year, says that the fund will invest in Colombia’s largest cities.
Posted inDaily Brief
Valepar Names Flores Vale Chairman
Valepar has nominated Ricardo Jose da Costa Flores to chair Vale’s board of directors. Valepar is Vale’s controlling shareholder. Flores is president of Previ, Banco do Brasil’s pension fund and Valepar’s controlling shareholder. Previously, Flores was VP of credit, and director of operating assets restructuring at Banco do Brasil. He was also chairman of the board of Banco Nossa Caixa and member of the board of executive officers of Febraban. Flores is also chairman of the board of Brasilcap Capitalizacao, president of Fenacap, and VP of the Confederacao Nacional das Empresas de Seguros Gerais, Previdencia Privada e Vida and CNSeg. Flores will replace Sergio Rosa, who has been chairman since May 2003.
Posted inDaily Brief
Interacciones Asks Investors on Tenor, Price
Mexico’s Banco Interacciones is planning to ask the market to set both the tenor and price on an MXP1.5bn bond issue that should happen by early December, CEO Gerardo Salazar tells LatinFinance. The issuer is seeking a 13-36 month tenor, with pricing between TIIE flat and 85bp over TIIE, he adds. “It is going to be assigned depending on the demand,” says Salazar. “Tenor is more important,” he adds. It is targeting institutional and high net worth Mexican investors with the deal, from a senior debt program of up to MXP10bn. At the same time, Interacciones will sell MXP630m in 10-year subordinated debt at a minimum of 175bp over TIIE. Salazar says the deals will be issued no later than 4 weeks from November 8. HSBC is sole lead on the 2 deals, rated A1 (Moody’s) and A (Fitch), which were recently approved by the CNV. The issuer has meanwhile opted to wait until early 2011 to issue a covered bond. It is looking for Nafin to guarantee 10.00% of the issue to ensure a AAA rating on the 22.8-year final, 8.0-year average life, deal. An MXP3.5bn debut covered issue had been expected. It has a AA rating with current collateral. The issuer is planning a non-deal roadshow for the covered bond this year, targeting Afores. Salazar says possible leads on the transaction include Citi, BBVA and HSBC. Interacciones specializes in sub-national and public infrastructure financing in Mexico. It is also looking to issue $2bn equivalent of covered bonds in local and international markets, and $280m of subordinated debt in the next 4 years, according to Salazar. Proceeds will be invested in infrastructure projects.
Posted inDaily Brief
Tivit Hires M&A Exec
Brazilian IT company Tivit has hired Andre Guimaraes Frederico as head of M&A and strategic planning. Frederico had previously been financing director at BRQ, another Brazilian IT services company, and had worked at Merrill Lynch and Patria Investimentos. Global PE firm Apax recently bought a 54.25% stake in Tivit from controlling shareholders Votorantim Novos Negocios and Patria Investimentos in May. “My job will be to confront the challenge of helping a technology giant continue to grow through a mix of organic and inorganic growth appropriate for the company,” says Frederico.
Posted inMagazine
People: Brazilian IB Moves
Eduardo Centola has joined UBS as CEO of the investment bank in Brazil, where the Swiss bank is focused on rebuilding its coverage.
Posted inMagazine
Brazilian Boutique Investment Banks Get Squeezed
The crop of boutiques that sprang up from the bulge bracket wreckage faces fresh competition. They will need relationships, international connections and a proper structure to survive.