Santander has agreed to sell a 5% stake in the Santander Brasil unit to Qatar Holding in the form of $2.72bn in convertible bonds. The mandatorily convertible 6.75% 3-year notes come with an exchange price of BRL23.75. The deal with the sovereign wealth vehicle will help Santander Brasil reach its goal of a 25% free float by 2014, Santander says. Last year’s BRL12.3bn IPO of the Brazil unit floated about 15%. Santander Brasil closed Monday at BRL24.53.
Category: Regions
Posted inDaily Brief
BP Sells Vene Assets
UK-based oil company BP confirmed yesterday that it is selling assets in Venezuela and Vietnam to Russian peer TNK-BP for $1.8bn. BP also declined to comment on the potential value of those assets, though they have been estimated at $1bn, according to an industry banker not associated with the deal. In Venezuela, TNK-BP, a 50/50 joint venture between BP and several Russian businessmen, says it will acquire from BP a 16.7% equity stake in the PetroMonagas extra heavy oil producer, a 40.0% stake in Petroperija, which operates the DZO field, and a 26.7% stake in Boqueron. These assets operate as joint ventures with PVDSA and have a combined capacity of 25 thousand barrels of oil equivalent per day. The buyer says the acquisitions will be financed through cash on hand and will not require additional capital from the shareholders of TNK-BP. A deposit of $1bn will be made by October 29, with final payment upon completion. Goldman Sachs and HSBC acted as BP’s financial advisors, says a company spokesman, while TNK-BP’s board was advised by Lexicon Partners and management by Credit Suisse.
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PDVSA Launches Bond Sale, Swap
PDVSA plans to swap 2011 bonds for 2013s in an offer to investors through November 12 and offer new 2017 bonds through the end of the week. The Venezuelan state-owned oil company will sell the $3bn worth of B+ 8.5% of 2017s at par in an offer through Friday. As with previous government offerings, the offer is directed at individuals and businesses with the “sector productivo nacional,” and investors will be allowed to buy the dollar-denominated bonds with Bolivars at a VEB4.30 per dollar rate. Results are set to be announced Monday. Separately, PDVSA will offer holders of its 6% 2011 bond new 8% 2013 bonds at an exchange rate of $1,125 per $1,000 if done by October 28, and $1,015 per $1,000 if done after. Citi is managing both processes.
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First Quantum Enters LatAm Mining
Canada-based copper miner First Quantum Minerals is making its first entrance into LatAm via the acquisition of peer Antares Minerals for CAD460m, the company says. Antares owns copper and gold assets in Peru and Argentina. As part of the deal, each Antares share will be exchanged for 0.07619 of each First Quantum share or a cash payment of CAD6.35 per Antares share. Also, Antares’ 50% stake in the Rio Grande project in Argentina will be spun off into a new company, Regulus Resources. The new company will be 90.1% owned by existing Antares shareholders and 9.9% by First Quantum. If the deal does not go through, Antares will have to pay the buyer a break-up fee of CAD13.5m. “LatAm is an important copper jurisdiction, so it is certainly has been on our radar,” according to a spokeswoman, adding that First Quantum will be looking for more acquisition opportunities. First Quantum operates in Australia, Africa and Finland. BMO Capital Markets is First Quantum’s advisor while Antares worked with Dundee Securities.
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Sofol Preps MXP Issue
Mexican lender Consupago is readying a cross-border sale of MXP750m in 2013 bonds. The Sofol specializing in payroll discount loans has issued yield guidance of 9.5%-10.0%, with the deal expected to price today or tomorrow, according to a banker on it. The issue is denominated in pesos, with payments in USD, and will raise funds to increase the bank’s capital. BCP Securities and GBM International are managing the BB minus sale, which was presented to investors last week and comes under Consupago’s $300m shelf.
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Televisa Pulls Out of Nextel
Broadcaster Televisa has pulled out of an agreement to acquire a 30% stake in Nextel Mexico, according to a joint press release. According to Nextel: “The decision to terminate the Investment Agreement stems from the parties’ differences in views on the regulatory and other risks associated with the investment and their inability to reach agreement on modifications to the Investment Agreement that would address those risks.” Televisa did not respond to calls for comment. Nextel also says the decision to terminate the agreement stems from Televisa’s decision to maintain its independence while pursuing opportunities in the Mexican wireless space. Televisa had said it hopes to bring quadruple play to Mexican consumers with the deal, which was conditional on Nextel/Televisa being awarded licenses to use specified amounts of spectrum in upcoming auctions in Mexico.
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IFC Guarantees Honduran Loan
The IFC is guaranteeing 36% of a subnational loan for Honduras’ central district municipality for $44m equivalent in local currency. This is the first time that the IFC has guaranteed a loan in Honduras not backed by the sovereign, says Javier Atala, general manager and executive vice president of Banco Financiera Comercial Hondurena (Ficohsa), lead arranger on the loan. The loan has an 8-year term and pays 16%, he tells LatinFinance.. Besides Ficohsa, others participating in the syndication are Banco Atlantida and Banco de Occidente. Out of the 16% interest rate, he says the banks syndicating the loan will divide 14% in equal parts and the IFC will get the remainder as commission. Ficohsa is lending $14.7m equivalent, Occidente $13.2m and Atlantida $13.2m, Atala says. The loan will be used to repair roads and implement an early flood warning system in the district, which includes Tegucigalpa.
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Ecopetrol Outlook Revised Up
Ecopetrol’s outlook has been revised to positive from stable by Fitch, after Colombia’s sovereign rating outlook was revised. Ecopetrol’s foreign and local currency issuer default ratings remain the same, at BB+ and BBB- respectively. Colombia’s outlook revision to positive reflects the country’s economic resilience and improved macroeconomic performance in relation to its peers, says Fitch. The country’s expected increase in oil and mining is also likely to benefit overall economic activity. Ecopetrol’s ratings reflect its strong financial profile, improving production capacity and adequate reserve levels, adds Fitch. The company’s growth strategy and associated capital investment are also considered aggressive. The ratings reflect the close link with the Republic of Colombia, which owns 89.9% of Ecopetrol.
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BP Reported Selling Venezuela Assets
A BP spokesman declines to comment on statements by German Khan, CEO of BP joint venture TNK-BP, stating that his company would acquire several of the oil company’s assets in Venezuela. According to press reports, Khan told reporters TNK-BP would acquire 16.7% of Petromanagas, 40% of Petroperija and 26.6% of Bougeron. BP also declined to comment on the potential value of those assets, though they have been estimated at $1bn, according to an industry banker not associated with the deal. Khan has been looking for assets to acquire in LatAm, the banker says, but this is his first acquisition of oil assets on the continent. He had previously acquired non-oil & gas assets outside of Venezuela, the banker says.
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PDVSA Sells 50% of Ruhr Oel
PDVSA has agreed to sell a 50% stake in Ruhr Oel GmbH to Russian oil and gas company Rosneft for $1.6bn excluding PDVSA’s share of crude inventory and receivables to be valued at closing, according to the buyer. Ruhr Oel GmbH is a 50/50 downstream JV between BP and PDVSA with stakes in 4 German refining and petrochemical complexes. Venezuela’s national assembly has also approved a 60/40 JV between PDVSA and ENI Lasmo, a subsidiary of Italian oil company ENI to develop Junin Block 5. According to a statement from the national assembly, the block is expected to produce up to 240,000 barrels of super heavy crude a day.