Brazil-based investment bank and asset manger BTG is heard to be in talks about a private equity capital raise with Singapore sovereign wealth fund GIC. “We are discussing with GIC, among others,” says a senior BTG official. He declines to comment on the size of the stake being sold, other than to say, “It’s significant.”
Category: Regions
Posted inDaily Brief
Copec Pursues Proenergia
Chilean energy company Copec says it has launched an offer to acquire 4.9% of Colombia’s Proenergia Internacional for about $237m in cash. Copec already owns 47.2% of the target. On May 14, Copec acquired 100% of AEI, which gave it its stake in Proenergia. At that time, Copec revealed its intention to buy the additional stake. Proenergia has 53% of SIE, which owns 89% of Terpel’s business in Colombia. Copec will buy the shares in the Colombian exchange. Corredores Asociados will handle the transaction.
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Ixe Raises Hybrid Note
Mexico’s Ixe has added to the subordinated portion of its capital structure, selling $120m in junior subordinated notes, according to a source with knowledge of the matter. The bank priced the B+ 2020 bonds at par with a 9.25% coupon, according to the source. Goldman Sachs managed the sale. The bank’s only previous dollar bond, according to Dealogic, was a $120m 9.75% perpetual bond in 2007, also managed by Goldman. Ixe and larger Mexican bank Banorte were the subject of rumors last week regarding a merger, or sale to Banorte.
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Provimi Buys Into Mexico
Dutch animal nutrition company Provimi has acquired NASSA, Nutricion y Alimentos de Sonora in Mexico. A spokesman for Provimi declines to comment on the price of the acquisition, revenues of the target company, bankers advising on the deal, or whether Provimi would be interested in making additional acquisitions in Mexico or LatAm. He adds that it was funded by cash on hand. NASSA represents the first acquisition for Provimi in Mexico. It already generates EUR180m from its businesses in Argentina, Colombia and Brazil, where it says it operates the local market’s largest animal nutrition company. Provimi’s last acquisition was in Colombia in 2008.
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Mexico Samurai Takes Time
Mexico’s Samurai bond should happen towards the end of this month, the sovereign’s public credit head Gerardo Rodriguez tells LatinFinance. “We are working on the transaction, of course, and there is some discussion with investors, but we don’t have anything finalized yet,” he adds. Rodriguez declines to comment on talk that price discussions are in the range of the yen swap plus 50bp-60bp. The sovereign is expected with a 10-year bond of around JPY150bn yen ($1.8bn), guaranteed by JBIC. Nomura, Mitsubishi UFJ Morgan Stanley and Mizuho are managing the sale. Mexico’s December 2009 Yen bond sale raised JPY150bn in 2019s to yield 2.22%, or yen swaps plus 80bp.
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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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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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Mexican Gym Winded on First Day
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.
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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.