Occidental Petroleum (Oxy), the fourth-largest oil company in the US, is to sue Ecuador for $1 billion of damages after the government cancelled its exploration rights and took over its assets in the country last Thursday. Oxy, which filed its claim with the International Center for Investment Disputes in Washington, says the government has violated the US-Ecuador Investment Treaty. Meanwhile, Canadian oil company EnCana, which bought a 40% in Oxy’s Block 15 in 2000 and sold it on to Chinese joint venture Andes Petroleum earlier this year, may be forced to refund up to $280 million of the sale revenues following the seizure due to contractual clauses.
Category: Regions
Posted inDaily Brief
Famsa Debuts On Mexican Exchange
Mexican home appliance retailer Grupo Famsa successfully floated 30% of its stock on the Mexican stock exchange on Friday, achieving a share price of 26 pesos ($2.36). The global IPO raised $230 million, which the company plans to use to pay down debt and fund expansion. The issue was coordinated by BBVA Bancomer and Credit Suisse.
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Iusacell Extends Swap Deadline
Mexican cell phone operator Iusacell has extended the deadline of its $350 million debt swap offer until June 1. The company is offering to swap 14 ¼% bonds, due 2006, for new bonds at 10%, maturing in 2013. The offer was originally due to expire on May 18. The swap is part of a larger debt restructuring program. The firm reached an agreement with creditors to restructure $750 million of debt in January, following protracted negotiations.
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Chocolates And Fifco Offer To Buy Pozuelo
The food and beverages arm of Colombia’s largest conglomerate, GEA – Nacional de Chocolates – and Costa Rica’s Florida Ice & Farm (Fifco) have made an offer of $205 million to buy Pozuelo, the Costa Rican cookie and juice subsidiary of Spain’s Ebro Puleva. The acquisition will give the buyers around 28% of the Costa Rican cookie market. Pozuelo distributes its products throughout Central America and its acquisition by Chocolates fits with the company’s strategy of consolidating its distribution base in the region.
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Panama Charges Ex-president Alemán With Moneylaundering
A Panamanian judge has ordered the arrest of former president of Nicaragua, Arnoldo Alemán, on charges of moneylaundering. Other family members, including his wife, have also been charged. Panama claims Alemán carried out the illegal activity via the Panamanian banking system to launder almost $60 million of public funds diverted to different bank accounts. Alemán, who governed Nicaragua between 1997 and 2002, has been under house arrest just south of the capital Managua after being convicted of embezzlement in Nicaragua in 2003.
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Colombia Hopes To Raise $451 Million From Bancafe Sale
Colombia is to sell off the country’s largest state-owned bank – Bancafe – for no less than $451.44 million (1.09 trillion pesos), according to the government. The bank will be sold off to the highest bidder in the third-quarter of the year. Foreign and domestic banks will be permitted to bid for the institution. The sale of Bancafe will leave only one state-run bank – Banco Agrario – operating in Colombia.
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Exito Plans Share Offering
Colombian retailer Almacenes Exito is planning to sell more shares via the Bogotá stock exchange. The details of the sale are not yet known but the company recently announced it will spend $150 million this year expanding its network of outlets in the country to meet increasing consumer demand and to counter growing competition.
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YPFB Becomes Bolivia’s Third-Largest Oil Comany
Bolivia’s state-owned energy company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), will today, Friday, become the country’s third-largest oil company when it takes ownership of the country’s nationalized assets, giving it control over 15% of Bolivia’s gas reserves. The transfer of the shares of the country’s three listed oil concerns gives YPFB a 51% controlling holding. Brazil’s Petrobras and Spain’s Repsol YPF remain the two largest oil companies in the country.
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IFC Invests In Colombian Energy
The International Finance Corporation, the private-sector arm of the World Bank Group, has signed an agreement to purchase equity worth up to $15 million in Grupo Petrotesting, a Colombian oil and gas company. The company said it will use the funds to help with its expansion plans in the region.
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Xstrata To Buy Peru Tintaya Copper Mine
Swiss mining company Xstrata has agreed to pay $750 million to Anglo-Australian firm BHP Billiton for its Tintaya copper mine in the south of Peru to consolidate its presence in the mining sector in Latin America. Xstrata is already developing a copper project in Peru – Las Bambas – in the south at Apurimac. It also has an important copper and gold operation – Alumbrera – in the northwest of Argentina.