Dominican Republic has approved the sale of Verizon’s local assets to Mexican wireless phone operator América Móvil for just over $2 billion. The Mexican company offered to buy the Dominican unit in April, along with Verizon’s 28.5% stake in Venezuela’s CANTV for $676.6 million.
Category: Regions
Posted inMagazine
Cushioning the Blow
Dan Ozizmir, managing director in Swiss Re’s capital markets unit, explains how the reinsurer structured a $160 million catastrophe bond for Mexico.
Posted inMagazine
Long, Slow March
With homebuilding and lending going full-throttle in Mexico, originators are hurrying to package their mortgage portfolios into securities.
Posted inMagazine
Ready for REITs
After having worked out some tax complications, Mexico is poised to become the first Latin American country to develop a REIT market.
Posted inDaily Brief
Peru’s Fiscal Surplus Doubles
Peru’s fiscal surplus rose in April to just over $1 billion, almost double its level at the same time last year, according to the country’s Central Bank. The increase has been driven by the improvement in tax collection, the Bank said.
Posted inDaily Brief
Arca Postpones Herdez Acquistion
Mexican bottling company Arca has “postponed indefinitely” its offer to buy a non-controlling stake in local food processor Grupo Herdez. Arca had said it would spend up to $288 million in Herdez, a family-owned business controlled by the Hernández-Pons family. Monterrey-based Arca is Mexico’s second-largest Coca-Cola bottler.
Posted inDaily Brief
Multivalores Applies For Banking License
Mexican financial group Multivalores is applying to the Ministry of Finance for a license to establish a bank. The group, which already owns a brokerage, an investment fund operator and a leasing company, feels the creation of a bank would consolidate its position in the financial system. Mexico’s banking sector is dominated by foreign-owned institutions such as Spanish banks BBVA and Santander, Citigroup of the US and HSBC of the UK.
Posted inDaily Brief
Alsea Raises $68 Million
Mexican fast-food operator Alsea has raised $68 million via a secondary share offering, less than the $85.5 million it had expected to sell. The sale, which was postponed from May 25 following the slide in the Mexican bolsa which reflected the worldwide slump in emerging markets, comprised 18 million shares at a price of 42 pesos per share ($3.78). The sale was managed by the Mexican unit of Banco Santander Central Hispano.
Posted inDaily Brief
América Móvil To Close Deal On Verizon Dominicana
Mexican wireless phone operator América Móvil hopes to close a deal to buy Verizon Dominicana (ex-Codetel), part of the Latin American assets being sold off by the US telecoms giant. América Móvil offered $2.06 billion to buy the Dominican unit in April, along with Verizon’s 28.5% stake in Venezuela’s CANTV for $676.6 million.
Posted inDaily Brief
Uribe To Serve Four More Years
Colombian president, Alvaro Uribe, made history Sunday by becoming the first Colombian leader to be re-elected to serve two consecutive terms. Uribe was returned with 62% of the votes, beating nearest rival, Carlos Gaviria, who gained the backing of only 22% of Colombians. The president earned widespread voter approval as a result of his hard line on security issues and his successful management of the country’s economy. He persuaded Congress to make constitutional amendments to allow him to stand for re-election, arguing that he needed more time to complete his work. Meanwhile, in line with many other markets in the region, Colombian stocks bounced back after the dramatic slide of recent weeks. The benchmark stock index, the IGBC, rose 8% on Friday with a record number of transactions for the month. And the country’s Central Bank surprised economists by keeping interest rates unchanged; the benchmark overnight lending rate remains at 6.25%, confounding expectations of a 25 basis points rise.