France-based household equipment maker Groupe SEB says it is acquiring a majority stake in Colombian peer Imusa from investment firm Industrias Arfel, also based in Colombia. The buyer plans to launch a delisting offer through which it expects to acquire at least 94.17% of Imusa, it says. The companies have not announced the sale price, but the local press says SEB will pay about $96m equivalent for the stake, citing Imusa president Juan David Vieira. SEB says Imusa’s revenues as of the 9-months ended September 20 totaled $85m, a 15% increase over the same period the previous year. The deal is expected to close in March. An Imusa spokeswoman did not respond to questions about the sale price and advisors on the transaction. Imusa officials were not available for comment.
Category: Regions
Interbank Owners Acquire Inmisa
Grupo Rodriguez Pastor has acquired a 60% stake in Inmobiliaria Milenia (Inmisa). According to a banker on the deal, the Peruvian conglomerate, which owns financial group Interbank and retailer Supermercados del Sur, acquired the stake in the real estate company for about $33m equivalent via an auction on the local Bolsa. Sociedad Agente de Bolsa Inteligo, another subsidiary of the conglomerate, represented the buyer. Another 30% was acquired by Continental Bolsa at PES5.16 per share. Inmisa workers, who were also represented by Inteligo, took the remaining 9% also at PES5.16 per share, says another banker on the deal. He notes that the seller, government controlled investment fund Fonafe, had established a base price of PES5.06 per share, or about $42m, and that the price paid by the buyers is 2.4x that price. Celfin handled the sale.
Correction: IFC Financing Jamaica Power Company
A December 20 brief entitled “IFC Financing Jamaica Power Company” incorrectly states that the IFC and JPSC did not return calls for comment on terms of JPSC’s $99m loan. Only JPSC did not return calls.
Moody’s Ups Outlook for Mexican Banks
Moody’s has changed the outlook for the Mexican banking system to stable from negative. The change is a result of the banks’ strengthened capital and reserves, and solid earnings during the economic crisis. Asset quality has also improved, and the banks enjoy sound funding and liquidity, adds the ratings agency. David Olivares-Villagomez, analyst at Moody’s, says that Mexican banks’ strengthened capacity to absorb losses means that even under a severe stress scenario they would have enough resources to recognize expected losses. The banks’ loan book is funded largely by local, inexpensive core deposits. Their low reliance on market funding leaves the banks relatively protected from any deterioration in international markets. Earnings remain robust and profitability has remained relatively stable throughout the recession. However, Moody’s adds that Mexican banks are still reluctant to lend, which could stifle growth. Other challenges could include high loan concentration and continuing low interest rates, which could decrease profit margins. Moody’s adds that the operating environment has not improved much during 2010. In 2011 the economy is expected to grow, albeit more slowly than elsewhere in LatAm.
Moody’s Downgrades Airport Notes
Mexico City Airport Trust’s $64m dollar notes and $24m equivalent UDI notes have been downgraded by Moody’s to Ba3 with a negative outlook, from Ba2. The outlook reflects a potential continuation of negative circumstances, which could further weaken credit quality. The rating was placed under review for downgrade following the bankruptcy filing by Mexicana in August. The airline represented 33% of passenger traffic through Terminal 1, which could affect the financial performance of tenants, whose revenues go towards debt service payments. Moody’s notes that despite challenges, Terminal 1 will process approximately 11m passengers in 2010. Moody’s adds that some of the loss in passenger volume will be restored, as other airlines pick up Mexicana’s routes. The rating could go down if a major tenant breaks its lease or the airport faces another major external shock, adds Moody’s.
Peru Hydropower Project Gets Loan
The Cheves hydropower plant in Peru, a 168MW greenfield project, will get up to $250m financing through the IFC, in the form of an A/B loan. Up to $70m will come from the IFC, while up to $180m will come from international banks. The IFC says this is its first investment in Peru’s power-generation sector. Banks participating in the B loan include DnB NOR Bank, Nordea Bank, Societe Generale, and WestLB. Cheves will produce around 836 gigawatt hours of electricity per year, starting in 2014.
Buckeye Takes BORCO Stake
Texas-based Buckeye Partners has acquired the Bahamas Oil Refining Company (BORCO) oil storage terminal for $1.36bn. The petroleum pipeline owner and operator bought an 80% stake in the business from First Reserve, a private investment firm focused on the energy industry. Vopak, a tank terminal operator, owns the remaining 20%. The companies do not disclose terms of the deal, and do not respond to phone calls. BORCO is a 21.6m barrel storage terminal for crude oil, fuel oil and multiple petroleum products in Freeport, Bahamas. BORCO also offers blending, trans-shipment and bunkering services.
Colombia Keeps Rates Steady
Colombia’s central bank kept its rate on hold at 3.00%, in line with market expectations. The bank says inflation will end 2011 at 3.00% or lower, higher than its previous forecast of about 2.00%. Celfin, however, says inflation is on the low side of its target. Goldman Sachs expects the central bank to initiate a rate normalization cycle sometime during H2 2011 and to push the policy rate to 4.00% by end 2011. “However, if the real business cycle loses momentum in the quarters ahead and/or the currency appreciation pressures intensify we do not rule out that the policy rate would remain unchanged all the way until 2012,” it adds.
IFC Financing Jamaica Power Company
The IFC says it has arranged a $99m financing package for West Kingston Power Partners in Jamaica. The IFC is providing $22m. The remaining $77m is a syndicated loan. Following are the participants: Bank of Nova Scotia Jamaica, First Caribbean International Bank, DEG, FMO, CAF, CIFI and Finland’s export credit agency, Finnvera. The loans complement almost $33m in equity provided by Conduit Capital Partners’ Latin Power III fund. The loans are for 12 years, according to a source close to the company. Conduit Capital is sole sponsor of the West Kingston Power Partners and affiliate Jamaica Energy Partners. The IFC also says it has arranged $30m in long-term financing for Jamaica Public Service Company (JPSC) to help the company develop the 3.0MW Munro wind farm and the 6.4MW Magotty hydropower plant. The IFC and JPSC did not return calls for comment on terms.
Alfa Signs Oversubscribed Loan
Mexican conglomerate Alfa Friday signed a $600m 3-year syndicated loan, according to bankers with knowledge of the transaction. Credit Suisse and HSBC are the leads on the transaction, which pays 300bp over Libor, linked to a leverage grid. Participation is heard to have come from 16 banks, with the deal almost 2x oversubscribed. Orders were received at the MLA level from Inbursa, Santander, ING, Credit Agricole and Bancomext. At the arranger level Scotia, Banco de Chile, Banorte and Bank of America participated. At the manager level Bank of Tokyo Mitsubishi, Bladex, Mizuho and Wells Fargo made commitments. The deal is to back the $600m purchase of Eastman Chemical assets in the US. Alfa’s purchase of Eastman’s polyethylene terephthalate resins business and related assets and technology of its Performance Polymers segment was done by Alfa unit DAK Americas. On the M&A, BAML advised Eastman while HSBC worked on the buyside. Fitch downgraded Alfa subsidiary Grupo Petrotemex to BB (stable) from BB+, including notes issued by DAK, amid fears over leverage incurred in the purchase.