Mexican pharmacy chain and distributor Grupo Casa Saba has formally launched an offer to acquire up to 100% of Chile’s Farmacias Ahumada (Fasa) drugstore chain for $637m equivalent, or CLP1,642 per share, after Mexico’s antitrust regulator approved the deal. The offer is contingent on Saba obtaining at least 51% of Fasa shares from the open market. Casa Saba says in a regulatory filing that HSBC and Banorte will provide financing for the deal, but does not disclose terms. Buyer and seller had originally agreed in May to a deal, which includes assumption of about $162m in debt, and which the buyer says makes it the leading LatAm drugstore. Fasa’s Goldman Sachs and Servicios Financieros Altis are advising Fasa. Estructura Partners/Cicerone advised Saba, which claimed $2.2bn in sales last year. Fasa is controlled by founder Jose Codner and had $1.65bn in sales in 2009.
Category: Regions
Ecuador Signs $1bn China Loan
Ecuador’s government has signed a $1bn loan with the China Development Bank, its finance ministry says, emphasizing that there is no oil collateral involved. A $200m tranche is earmarked for special projects in the petroleum sector, with the remainder for general use. The 4-year loan pays a fixed interest rate of 6% and features a 6-month grace period. In addition to the $200m for oil projects, proceeds will be used to finance Ecuador’s investment program for infrastructure and other 2010-11 budgetary outlays. “This loan is not repaid with crude, nor has any guarantee or collateral of oil,” the finance ministry says. Ties between the 2 nations are already among LatAm’s coziest. China’s eximbank is lending $1.7bn to a hydroelectric plant which will start construction soon under China’s Sinohydro. Last year, Petroecuador, and PetroChina signed a 2-year crude-oil supply contract kicked off with a $1 billion advance payment.
BCP Preps 2020 Bonds
Banco de Credito del Peru (BCP) is readying a benchmark-size 2020 bond. Peru’s largest bank, rated BBB/BBB minus, will meet investors in the US and UK Monday through Wednesday. Bank of America Merrill Lynch and Deutsche Bank are managing the sale, expected by the market to raise at least $500m. BCP’s last visit to the international DCM was a $250m 9.75% of 2069 hybrid, sold in November 2009, now trading around 7.0% yield-to-worst, according to Credit Suisse data. It is hoped that the deal would be the first of many before the end of the year offering investors diversification away from Brazil and Mexico.
Ajegroup Sees Asia Growth
Besides new Thai operations, Peru-based Ajegroup is modernizing and expanding in Mexico, Colombia, Ecuador and Peru. It is adding new products, bolstering marketing, and forecasting significant growth in Asia.
Peru Fishery Consolidation: Minnows Beware
Peru’s fisheries are again poised to consolidate. Though the pre-crisis M&A pace may not be matched, opportunity for fundraising is expected.
IFC’s Nina Shapiro: Passion for EM
The IFC’s popular treasurer is forced by internal rules to step down. But the irrepressible Nina Shapiro has no intention of quitting emerging markets.
EXCLUSIVE: Panama’s Motta Eyes Home Potential
In a rare interview, Panamanian mogul Stanley Motta weighs his country’s potential for growth in infrastructure and capital markets. He does not rule out M&A for Copa.
Brazil-Peru: The Gateway to Asia
Brazil is building infrastructure throughout neighboring Peru with a view to opening up shipping routes to Asia. The substantial investment also boosts Peru’s long-term development.
Brazil Telecoms: Mobile Scramble
Ownership of Brazilian telecoms is in flux, reflecting elevated foreign interest as well as expansion on the ground. Consolidation has several more acts to run.
MEXICO CCDs: Expanding Opportunity
A wave of new CCDs is making its way to the Mexican market. Size and the diversity of underlying assets are slowly increasing.