Chilean clothing retailer Forus has moved closer to entering the Colombian market after agreeing to take a stake in local firm La Maravilla, buying inventory and 21 shops across the country. The retailer has been evaluating its entry into the Colombian market for some time now and has opted for buying into a local company. At the end of last year, Forus, which also has operations in Uruguay and Peru, raised around $45 million after it listed 20% of its capital on the Santiago Stock Exchange to help fund its expansion plans.
Category: Regions
Posted inDaily Brief
Axtel Plans To Raise $250 Million From Bond Sale
Mexican fixed-line phone operator Axtel is looking to raise $250 million via the issuance of 10-year senior unsecured notes to help take out the $311 million bridge loan, due May 2008, used to acquire local telco group Avantel. Credit Suisse is acting as sole bookrunner. The notes, which mature January 2017, have been rated BB minus by Standard & Poor’s. Axtel bought Avantel last December for $500 million, paying $310 million in cash and assuming $190 million worth of net debt.
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Cemex Gives Rinker More Time
Mexican cement giant Cemex has extended its bid deadline yet again for building materials firm Rinker, from January 30 to March 30, to give US regulators more time to review the offer. Cemex made a hostile takeover bid worth $11.7 billion last October for the Australian company, targeting Rinker’s valuable US business. However, Rinker’s board rejected Cemex’s offer saying it was “opportunistic” and “far too low”.
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Colombian Regulator Approves Exito Tender Offer
Colombia’s financial regulator has approved the public tender offer by local food retailer Almacenes Exito for rival supermarket chain Carulla Vivero, according to a statement by Exito. The retailer has offered to buy a minimum of 7.8 million ordinary shares, representing 22% of Carulla’s share capital, and a maximum of 20.4 million shares, or 57.7%, at a price of $15.792 per share. The deal will be worth between $123 million and $323 million.
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Bolivia Confirms Vinto Nationalization
Bolivia’s president, Evo Morales, has ratified a decision announced earlier this month to repossess the Vinto tin foundry, owned by natural resources group Glencore. According to the government, the assets were sold illegally by the government under former president Gonzalo Sánchez de Lozada. The nationalization of Vinto is part of a wider program announced last year to return mining assets to state control.
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Cemex Streamlines European Operations
Mexican cement producer Cemex has announced the retirement of Jose Luis Saenz de Miera, president of the company’s Southern Europe, Middle East, Africa and Asia Region. The operations under his responsibility will be integrated into the current European Region, forming a single operating region to be called Europe, Middle East, Africa and Asia Region, said Cemex in a press release. The newly created operating region will be headed by Fernando A. Gonzalez, president of the current European Region. Jose Luis Saenz de Miera will remain with the company until February 28 “to support and ensure a smooth transition process”. Francisco Garza and Juan Romero will continue in their current positions as president of North America and president of South America & Caribbean, respectively.
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Simec Launches Global Offer
Mexican steel company Grupo Simec is to make a global public offering of 52.2 million Series B shares, which may be delivered as ADRs, each representing three Series B shares (ADSs), plus an additional 7.8 million Series B shares to cover over-allotments. The global offering, worth an estimated $230 million, includes a concurrent offering of Series B shares in Mexico, said Simec. Citigroup Global Markets is the global coordinator for the offering, and Acciones y Valores Banamex, Casa de Bolsa Integrante del Grupo Financiero Banamex, and Ixe Casa de Bolsa, Ixe Grupo Financiero, are the joint bookrunners in the Mexican tranche.
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S&P Lowers Ecuador Rating To CCC
Ratings agency Standard & Poor’s has lowered Ecuador’s long-term sovereign credit rating to CCC from CCC+ and revised its outlook on the rating to negative from stable. The short-term sovereign credit rating remains C. S&P said its rating action reflected “repeated policy signals by the new administration that indicate significant downside risk to timely debt service on its US$3.86 billion of outstanding global bonds”. Ecuador is due to pay a $135 million coupon on its global 2030s on February 15 (with a 30-day grace period). S&P added that the rating could be downgraded further should the coupon payment be missed and should the government suggest the coupon will not be paid “during the grace period or if an exchange offer is put to investors”.
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ISA Sells $500 Million Bonds
Colombia’s largest energy provider, state-controlled Interconexión Eléctrica SA (ISA) has sold $554 million in bonds in a dual-tranche offering. The offering comprised $200 million of notes maturing January 30, 2012, and callable after three years and $354 million of 10-year bonds maturing January 30, 2017. The 2012 bonds were sold at par to yield 7.875% and the 2017 paper at par to yield 8.8%. ABN AMRO and JP Morgan arranged the transaction.
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Bolivia Seeks Full Mercosur Membership
Bolivia has requested full membership of regional trade bloc Mercosur. However, President Evo Morales, speaking at a press conference in Rio de Janeiro, made it clear that Bolivia would push for changes to ensure that such trading blocs benefit the ordinary people, and not just the business community, in member countries. Bolivia’s application to join, sent to the member countries, currently meeting at a Mercosur summit in Brazil – if approved – will make Bolivia the bloc’s sixth member. Venezuela joined last year. Mercosur member countries comprise Argentina, Brazil, Paraguay, Uruguay, Venezuela; associate members are Bolivia, Chile, Colombia and Ecuador.