Cemex Venezuela has sold assets it had outside the Andean nation for $547m. The company says it got rid of shares in several companies in Panama, Guadalupe, Trinidad & Tobago and the Dominican Republic that did not have links to its operations in Venezuela, where it is victim of the nationalization process.
Category: Regions
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Mexichem Plans Share Split, Primary Issuance
Mexican petrochemical company Mexichem is planning a three for one share split and a capital raise via a primary share offer, it says in a filing with the Mexican stock exchange. The issuance and split, which have to be approved by stockholders, seek to finance Mexichem’s expansion and maintain the company’s financial flexibility, it adds.
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Grupo Aval bags 11.67% Stake in Colombia’s Popular
Colombian holding company Grupo Aval has acquired 901.8m shares equivalent to a 11.67% stake in Colombia’s Banco Popular for COP239bn ($140.5m), Diego Rodriguez, vice president of risk for Grupo Aval tells LatinFinance. The shares, priced at COP265, were part of a 12.11% sale from the Colombian government and the district of Bogota that were sold yesterday at the domestic exchange. With the purchase, Grupo Aval now controls 30% of the bank, Rodriguez adds.
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Colombia’s Popular Set to Price
Colombia’s Banco Popular is set to price the sale of a 12.11% stake today in a deal that could raise $140m. The bank will offer approximately 953m shares at COP265 each on the Bogota stock exchange. The share closed at COP275 yesterday, according to the Bogota bolsa. Colombian boutique investment bank Agora is the bookrunner. The new issue equity market will be active this week with a range of offerings that includes a jumbo print from OGX, as well as Mexico’s bolsa. Brazil oil and gas startup OGX should price today 4.95m shares at an expected range of BRL883-BRL1,131. At the top of the range, gross proceeds would total $3.9bn. UBS, Credit Suisse and Itau BBA are leading. Investors barely have time to catch their breath before Mexico revives with a long awaited listing for the Bolsa Mexicana de Valores, which is hoping to sell 279m shares at MXP14.00-MXP19.00 Thursday via UBS and BBVA. If priced on target and a greenshoe is exercised, the deal could raise $442m.
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Mahle Buys Mexico Engine Parts Maker
German car parts conglomerate Mahle has acquired the total shares of Mexican engine parts manufacturer Clemex, Mahle says. Clemex, which had sales of $16m in 2007, will keep its name until early 2009 when it will be completely merged with Mahle. Terms of the transaction were not disclosed. Mahle sees the deal giving it a platform for further growth in the North American light duty engine bearings market. The Stuttgart-based firm had sales of over EUR5bn in 2007, it says.
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Colombia’s Alpina Seeks to Enter US
Colombian dairy producer Alpina is looking at several US dairy companies for a possible purchase, a company spokeswoman says. With the purchase, Alpina wants to enter the US market not as an importer but as a local producer of goods, she adds. Alpina has yet to identify a target for its acquisition, but the purchase is expected to happen in the second half of 2008, the spokeswoman says. A bond issuance is also in works for Alpina.
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Prudential, Concord in Resort JV
Prudential Real Estate Investors is teaming up with Mexican real estate developer Grupo Concord to build Mexico’s Costa Brava Resort and Marina Project with an investment of $800m, Prudential says. The facilities will include 1,800 condominium units as well as a golf course, marina, hotel and shops. The resort is located on the Gulf of California coast near La Paz.
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German Solar Producer in $3.5bn Mexico Investment
German solar cell producer Q-Cells will invest $3.5bn in a production complex in Mexicali, according to the Mexican government. Construction of the first facility is expected to start in the second half of 2008. “Expansion plans are contingent upon the development of the photovoltaic markets in the US, Mexico and Latin America, that will be supplied from Mexicali,” Q-Cell says. The company expects to better reach the growing markets in the region and hedge against currency fluctuations, it says.
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Dedicated Equity Funds Seen Losing
LatAm equity funds lost 0.42% the week ending June 5, according to Lipper. The performance was slightly better than EM funds, which sank 1.20%. China region funds lost 0.16%. Natural resources fund saw the biggest returns of the week, gaining 3.71%, while dedicated short bias funds experienced the biggest drop, losing 1.74%. Meanwhile, Lipper data shows 0.13% gains for EM debt funds in the week ending June 5. Global income funds rose 0.16% while international income funds returned 0.05%. General US Treasury funds gained 0.44%, the biggest returns of the week, while flexible income funds lost 0.15%, the biggest drop.
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High Costs Put Squeeze on Mex Industrials
High energy and raw materials prices are putting the squeeze Mexico’s industrial sector, according to JPMorgan, putting pressure on certain credits. Paper and packaging producer Durango is struggling with its balance sheet. “Liquidity is likely to continue to deteriorate, which could put pressure on the company’s ability to meet coupon payments in the medium term,” the shop says. Durango has been targeting $20m in asset sales to raise cash, JPMorgan notes, likely to be followed by more beginning next year. Homebuilder DesMet is likewise expected to have difficulty meeting revised forecasts, due to falling short of construction targets. “We recommend investors remain on the sidelines on this name until a clearer picture emerges,” JPMorgan says of DesMet’s 10.875% 2017 issue.