Grupo Sports World traded down 1.5% to MXP15.75, the day after pricing 53.6m shares at MXP16.00 to raise MXP857m.The Mexican bolsa dropped 0.33% on the day. The Mexican health club chain formerly owned by private equity fund Nexxus Capital says 1,657 investors bought the deal, 54% of them institutional. The deal represents a 61% float and Sports World claims it is the first pure fitness company to publicly trade in LatAm. The exit represents the third stock market exit for Nexxus, which keeps about a 20% stake, and will “maintain a significant influence in the company,” Sports World says.
Category: Regions
Posted inDaily Brief
Volkswagen Leasing Taps Mexican Market
Volkswagen Leasing on Wednesday issued MXP1.5bn in 4-year bonds, after receiving an order book that was 5x oversubscribed, according to a banker on the deal. “There is deep demand in the market for this tenor, and the transaction also shows that appetite has returned for bonds issued from this sector,” says the banker. The leasing unit of Volkswagen’s Mexico operations will pay a spread of 60bp over TIIE, the low end of 60bp-65bp guidance. Banamex and ING were joint leads on the deal, rated AAA on a national scale. Proceeds will be used to finance lending.
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Peru Surprises With No Change
Contrary to market expectations, Peru’s central bank left its monetary policy rate unchanged at 3.00%, citing a small drop in inflation. Morgan Stanley forecast it would tighten by 25bp to 3.25%, a lower hike than the 50bp increase seen in August and September, due to low inflation, which is around 2.0%. Barclays also expected a 25bp hike, with the rate ending at 3.5% by the end of the year. Bank of America Merrill Lynch expected the bank to continue the trend with a 50bp hike.
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Natraceutical Signs Brazil MOU, Mulls Listing
Spain’s Natraceutical has signed an MOU with Bio Group Brazil to develop a joint venture between the two nutritional supplement companies in Brazil, according to a company statement. The joint venture, Forte Pharma Brazil, will be 65% owned by Bio group Brazil, with Natraceutical owning the remainder. Natraceutical is a Spanish multinational controlled by Natra, the Spain-based cocoa products manufacturer. The JV will distribute Natraceutical’s products in the LatAm market. Natraceutical, meanwhile, will also consider filing on the Sao Paulo stock exchange. According to a representative from Natraceutical, no financial advisors are involved in the negotiations. The agreement represents Natraceutical’s first foray into the LatAm market, according to the spokesman. Details regarding investment requirements and fundraising needs for the new JV will be decided in the coming months, according to Natraceutical.
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Davivienda Issues Local Bonds
Colombian bank Davivienda issued COP500bn ($208m) in local bonds in 4 series. A COP91.6bn 2-year tranche pays 1.10% over IBR, a COP92.3bn piece pays 1.31% over IBR, a 5-year COP120.2bn pays 3.14% over IPC, and a 7-year COP196.1bn tranche pays 3.63% over IPC. Total demand for the AAA rated notes soared to 3.1x the amount offered, says a banker away from the deal. Davivalores, the bank’s brokerage, managed the sale.
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Correction: Mexico Reported on Yen Road
An October 7 daily brief entitled “Mexico Reported on Yen Road” incorrectly identifies one of the managers on an upcoming Mexican bond transaction. Mitsubishi UFJ Morgan Stanley is one of three managers.
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Ixe Cancels Mexicana Flight
Ixe does not plan to continue in Grupo Mexicana de Aviacion’s restructuring process, it says. The bank had previously said it was considering a small stake in the airline, if it was able to successfully reorganize its finances and resume operations. Bankrupt Mexicana stopped operations earlier this year, with holdco Tenedora K, a company formed by Mexico’s Grupo Industrial Omega and Grupo Arizan, buying control from owners including Ixe.
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Peru Rate Hike Expected
Peru’s central bank is expected to tighten its monetary policy rate today. Morgan Stanley forecasts it will hike 25bp to 3.25%, less than the 50bp increase seen in August and September, due to low inflation. Barclays also expects a 225bp hike, with the rate ending at 3.5% by the end of the year. Bank of America Merrill Lynch meanwhile predicts a 50bp hike. It expects Peru to end the year at 4.25%.
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Brazil’s Talent Group Sells to Publicis
France’s Publicis Groupe says it will acquire a 49% stake in Brazilian advertising agency the Talent Group. Publicis also received options that could lead to a majority stake in the future. According to press reports, the $110m deal implies a $220m valuation for the EUR50m revenue company.
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Conduit Capital Investing In Mexico
NY-based private equity firm Conduit Capital plans to invest about $100m to build 2 hydroelectric plants in Mexico, say sources close to the shop. One of the projects, Cerro de Oro, will generate about 14MW and the other, Veracruz, will generate about 30MW. Construction should be completed in about 2 years. About half of the funds will come in the form of equity and the rest from bank financing. Conduit is already in talks with several banks, the sources say without disclosing names. The equity portion will come from the Latin Power III fund and Asergen, Conduit’s partner in the projects. The firm, which has plans to open an office in Mexico, is also seeking to invest in wind projects, but no specific plans have been revealed.