Category: Regions

Alejandro Werner has resigned as Mexico’s undersecretary of Hacienda y Credito Publico, according to local press. He is expected to be replaced by revenue undersecretary Jose Antonio Meade, who will be replaced by Jose Antonio Gonzales Anaya, according to local press speculations. “Replacing undersecretary Werner is an extremely difficult task, because of his strong academic background, vast experience in the Mexican public sector, and strong credibility in international financial markets,” say analysts at Goldman Sachs’ EM economic research team. However, they add that both likely replacements – Meade and Gonzales – have strong public sector experience so, if confirmed, would be good appointments. Werner’s brother Martin runs Goldman in Mexico. A spokesperson for the finance ministry declines to comment on the expected departure.

Red de Carreteras de Occidente (RCO), the concession holding road assets won in the landmark 2007 auction known as Farac I, plans to raise up to MXP3.16bn in equity. The concession controlled by ICA and Goldman Sachs will issue up to 3.54bn shares through a rights offering to existing holders, set for September 8. RCO raised MXP6.55bn in October 2009 through the sale of certificados de capital de desarrollo (CCDs), the first placement in that asset class.

Mexican building supply conglomerate Elementia has filed a shelf to issue up to MXP5bn in debt. It is looking to issue a bond in the local market in the coming weeks, according to a spokesperson for the company. Inbursa and Arka are managing the sale, though the date and size of the issue have not yet been determined. Elementia will not be doing a roadshow because it is a local deal, adds the spokesperson, though 3 main investors that LatinFinance spoke to about the transaction say they are unfamiliar with the credit. The issuer was due to sell $400m in 2020 bonds in May after meting with US and UK investors, though pulled it along with the region’s other DCM hopefuls when global markets took a tumble.

Mexico telecom Maxcom, which is said to have hired Barclays to advise on a sale of the company, says it is “evaluating strategic options for its future” and is having “conversations with different participants in the market.” Research shop Banif-Ixe says that given the company’s cash problems, the company may be looking for a partner to inject capital and boost growth. The shop believes a sale of the entire company is a possibility and that the eventual buyer could pay a higher multiple than the one at which the share currently trades. At the close of the last session, the share traded at a 2010 estimated P/BV of 0.5x and an EV/Ebitda 10e of 6.0x. Telemar, Televisa Megacable Telefonica, Vivendi and Axtel are said to be potential bidders. Banif-Ixe adds that since regulation does not allow a foreign investor to hold more than 49% stake of a Mexican company, a foreign buyer would be limited to minority participation. Barclays is heard to be leading the process. A price of $400m-$500m is rumored, including debt.

Nexxus Capital is planning a retap of its certificado de capital de desarrollo (CCD) sold in March, what would be the first reopening of a CCD in the asset class’ 1-year history. The Mexican private equity firm does not indicate the size in its regulatory filing, but officials there had previously indicated a $50m-$70m equivalent raise is likely. The 2020 deal priced at MXP100 and raised MXP1.46bn for what is essentially Nexxus’ fourth private equity fund, investing in a wide variety of assets in Mexico over a 5-year period. BofA-Merrill Lynch, Santander, and Ixe are managing the transaction. The firm was also planning to raise an amount roughly equal to the CCD via traditional channels for a fifth fund that co-invests with a fourth, drawing largely from investors in Nexxus’ previous vehicles.

Mexican silver miner Penoles is looking to issue $600m of debt on Mexico’s local market, after changing the format and growing the size from a much anticipated issue pulled in June that was expected raise up to MXP7bn. The “Mexican long-term USD denominated local notes,” as Moody’s describes them, will be guaranteed by principal subsidiaries, excluding Fresnillo. BBVA, HSBC and Santander are heard managing the sale. Investors expect it to be a dual tranche 10 year fixed and 6-year floating rate deal. Proceeds will go towards refinancing debt and financing investment. The miner did not go ahead with what was meant to be its debut bond issuance in June because it failed to find an acceptable FX derivative structure to swap the issue back into dollars, its main earning currency, according to investors. Moody’s assigns the bonds a Baa2 senior unsecured foreign currency rating and an Aa1.mx national scale rating. Moody’s also assigned a Baa2 global local currency issuer rating to Penoles. The rating considers the number of regions in which the company operates, the diversity of metals produced, and the integrated nature of the business. Penoles is a leading producer of refined silver, with an approximate 11% market share globally and an important producer of lead and zinc within the LatAm.

Spanish bank BBVA is rumored to be considering the sale of some assets in LatAm, according to 2 sources, one based in the US and the other in Mexico. The US-based source says the bank is in preliminary talks with potential buyers, but he does not name the potential acquirers. He adds that units in Central and South America may be on the block. It is not known exactly which assets it would sell, or in which countries. BBVA IR officials in Spain did not return calls for comment.

Australia’s Macquarie Airports expects to raise $207m from its stake in Mexico’s ASUR. The total would represent $28m less than the $235m it paid for the stake 2 years ago. The situation was not helped by a 14% tumble the shares took in the period from the August 3 announcement to the August 11 closing. The 4.36m ADS, representing 43.6m Mexican shares and a 16% stake in the airport operator, priced at $44.80, to raise $195m, and a 10% overallotment is expected to be exercised, according to bankers on the deal. The bankers note an oversubscription. “Having determined that we will not be able to bring our active management model to bear, [Macquarie Airports] took steps to exit the investment in ASUR as soon as practically possible whilst optimizing proceeds,” the seller says in a statement. JPMorgan and Macquarie Capital managed the deal. ASUR ADS closed Thursday at $44.90.