The delayed tender offer for the $6.5 billion mega-refinery for Central America is to be launched in November, according to a statement by Guatemalan leader Oscar Berger. The site of the mega-project, part of the Mesoamerican Energy Initiative, is to be decided by the investors, but will likely be in Guatemala or Panama. The project aims to help Central American economies reduce their energy costs. Mexico, which is due to supply around two-thirds of the crude to the refinery via its state-run oil company Pemex, will benefit from the extra refining capacity and cheaper gasoline on its doorstep. Investors who have already expressed an interest in the project include oil companies such as Petrobras, Chevron-Texaco, Conoco-Phillips, Occidental Petroleum, Shell and British Petroleum and investment banks Deutsche Bank, Scotia Capital, Banamex-Citigroup and Mitsubishi.
Category: Regions
Cemex Sweetens Rinker Bid
Mexican cement producer Cemex has sweetened its hostile bid for Australian building materials company Rinker. The $14.2 billion offer has been accepted by Rinker’s board who have recommended that shareholders accept the offer “in the absence of a superior offer”. Cemex originally offered $11.7 billion for Rinker last October, a bid that was described as “opportunistic” and “far too low” by the Australian firm’s board. The Mexican firm recently received approval for its offer from US regulators after it agreed to sell off certain assets in the US to conform to anti-trust regulation.
Peru To Tap Local Currency Bonds
Peru planned to reopen two of its sol-denominated issues on Monday, hoping to raise $75 million (240 million soles) from the sale of local-currency paper – 180 million soles in 2026s and 60 million soles in 2046s. The sovereign last tapped its 2026 issue, which carries a coupon of 8.20%, in March. Then it raised $62.8 million (200 million soles) of the domestic paper, selling above par to yield 6.30%. The inflation-indexed 2046 paper carries a 3.63% coupon. The government is authorized to sell up to 2.33 billion soles of local-currency paper this year.
Mexico Core Inflation Eases
Mexico’s annual core inflation fell back to 3.83% in March, down from 3.95% in February, confirming earlier indications by Banxico, the central bank, of an easing in core prices, which rose 0.32% over the month. Meanwhile, the consumer price index for March was up 0.22%, taking annual general price rises up to 4.21% from 4.11% a month earlier.
Panama Authority Selects Shearman & Sterling
The Panama Canal Authority (ACP) has selected Shearman & Sterling LLP as its international legal advisor for its expansion financing needs. The firm will work closely with the ACP and its financial advisor, Mizuho Corporate Bank, “to determine the most advantageous financing options for the Authority”. Shearman & Sterling joins Mayer, Brown, Rowe & Maw LLP, the law firm selected to advise the ACP in the procurement and contracting aspects for the Expansion Program.
Bancolombia Launches Public Tender Offer For Banagrícola Shares
Colombia’s largest financial institution, Bancolombia, has launched a public tender offer – via its subsidiary Bancolombia (Panamá) – simultaneously in El Salvador and Panama to buy not less than 53.1 % and up to 100% of the common shares of Banagrícola. Earlier this month the bank announced it had secured loans totaling $590 million as part of the financing for its acquisition of the Salvadorian bank. Bancolombia bought Banagrícola last December for around $900 million. Earlier, the bank issued a statement saying that it had obtained all the necessary authorizations for the acquisition.
Cemex Bid Wins US Regulator Approval
Mexican cement producer Cemex has won approval from US regulators for its bid to buy Australian building materials firm Rinker after agreeing to sell off certain assets in the US to conform to anti-trust regulation. However, Cemex has still to convince Rinker’s shareholders to accept its $11.7 billion hostile offer, which was described as “opportunistic” and “far too low” by the Australian firm’s board when it was presented last October. Cemex recently extended the offer period for a third time until April 27.
Peru Inflation Continues to Gather Speed
Peru’s national statistics bureau INEI has released inflation figures for March showing that prices continue to pick up speed, rising by 0.35% last month against a rise of 0.26% in February. March’s price rise is the fastest in the past 11 months. The Central Bank is targeting inflation this year of between 1.5% and 3.5%. Cumulative inflation for the first quarter of the year was 0.62%.
Bolivia To “Recover” Telco Entel
Bolivia is planning to nationalize telecoms operator Empresa Nacional de Telecomunicaciones (Entel), currently controlled by Telecom Italia, which holds a 51% stake. The recovery of Entel’s assets by the Bolivian state will be carried out via negotiations by a ministerial commission with the Italian telco. The commission, set up by presidential decree, comprises three ministers and two deputy ministers and has a deadline of May 1 to negotiate the recovery of the assets for the state. Entel was privatized in 1996 and a controlling stake sold to Italian company Stet for $610 million. Stet was later absorbed by Telecom Italia.
Ecuador Congress Suspended; Referendum Date Nears
The president of Ecuador’s Congress, Jorge Cevallos, has suspended legislative sessions until April 10 as the political crisis in the country deepens ahead of the April 15 proposed referendum on constitutional reform. The sacking of 57 lawmakers by the country’s Supreme Electoral Court (TSE) last month sparked a series of legal twists and turns that have led to an impasse between the government and Congress.