Harvest Natural Resources has received a $400m offer for its 32% stake in Venezuela’s Petrodelta from Argentina’s Pluspetrol, it says. In the deal, Harvest would sell its 80% interest in Harvest-Vinccler Dutch Holding (HVDH). Harvest would sell 29% of HVDH immediately for $125m, and sell the remaining 51% for $275m during 1H2014. The US E&P operator plans to use proceeds to pay off long-term debt and for working capital. The deal is subject to the negotiation of definitive agreements between the two firms, as well as approval from stockholders and the Venezuelan government.
Category: United States
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US Boutique Heads to Mexico
BCP Securities has opened a Mexico office, through a JV with local partners, the US-based boutique says. The independent broker-dealer and investment bank primarily focused on EM bonds will partner with Hector Rangel, Anthony McCarthy and Maria del Carmen Arreola – all three coming from senior roles at Banomext and Nafinsa. Rangel is to be president of BCP Securities Mexico. BCP has offices in Sao Paulo and Rio de Janeiro, in addition to LatAm focused staff at its US headquarters.
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American’s Comex Bid Denied Again
Mexican antitrust regulators have denied an appeal to Sherwin-Williams in its quest to acquire Consorcio Comex, Sherwin says, meaning the acquisition isn’t authorized. The US paint maker “is considering all options, including whether to refile with the [Mexican Competition] Commission.” The parties agreed last year on the $2.34bn sale of all of Comex, before regulators challenged the Mexican portion in July. Officials were concerned about the ability to set artificially high prices in Mexico. In September, Sherwin completed the acquisition of Comex’s US and Canadian businesses, for $90m cash and $75m assumed liabilities. HSBC and JPMorgan have been advising Comex and Goldman Sachs advising Sherwin.
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US Firm to Try Fibra Market
Prologis has added its name to the Mexican equity pipeline, and is planning to sell shares in a Mexican Fibra real estate fund focused on manufacturing and logistics properties, according to regulatory documents. The Prologis Property Mexico fund plans to sell shares in a fund initially holding 177 properties in several Mexican cities. The size and exact timing remain to be determined, though an initial filing this week sets up a pricing by December if the issuer finds conditions acceptable. Banamex, Banorte-Ixe, Actinver and Credit Suisse have been hired to manage. US-based Prologis manages property in 21 countries. The most recent Fibra, Danhos, raised MXP5.98bn ($454m) earlier this month, though its pricing at the bottom of the range has kept in place concerns of Fibra oversupply. Danhos has traded down 0.1% since its pricing. Other Fibras have also fallen, with Fibra Uno and Fibra Macquarie, two of the largest, down 2.1% and 6.6%, respectively, this year.
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US Developer Exits Mexico Retail Portfolio
US developer Kimco Realty has agreed to sell a four-property shopping center portfolio in Mexico to Planigrupo, for MXP1.2bn ($92m), it says. The portfolio includes the Plaza Universidad in Pachuca, La Nogalera in Saltillo, Gran Plaza in Cancun and Plaza Bella Huinala in Monterrey. The closing of this sale is subject to Mexican regulatory approval, and is expected to be completed during 4Q 2013. The deal follows another $274m portfolio sale to Planigrupo in May.
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American Betting on Brazil Education
US educational operator Laureate Education has entered into an alliance with Brazilian university chain FMU, FMU says. Neither party has officially made an announcement calling the transaction a sale, but FMU says the alliance must be approved by Brazilian antitrust regulators. Reports in the Brazilian press suggest terms could be announced as soon as this week. FMU has 90,000 students and annual revenue of BRL450m. Laureate has been in Brazil since 2005, when it acquired control of Anhembi Morumbi.
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American, Mexican Team up for Hotel CCD
US hotel-focused private equity firm Brilla Group and Mexican real estate investor IGS are preparing a certificado de capital de desarrollo (CCD) transaction in Mexico’s domestic market, according to regulatory documents. The BRI-IGS fund created will invest in hotel assets throughout Mexico. The target size, to be reached through capital calls, remains to be determined. The fund plans to spend five years making investments and five years exiting. Investors are to receive the principal invested plus a 10% preferred return, with remaining profits divided 80%-20% between investors and the managers. The managers expect an 18% return overall. Actinver is managing the transaction, for which the timing remains unclear. The deal would be the first real estate CCD focused on hotels, and follows several hotel plays appearing in Mexico’s public equity markets, all to take advantage of the increasing domestic travel forested along with expected GDP growth.
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Gigante Clinches Office Depot Buy
Grupo Gigante has agreed to buy the remaining 50% of Office Depot Mexico it does not own from Office Depot for MXP8.77bn ($691m), it says. The buyer has arranged a 1-year bridge loan through BBVA and Credit Suisse, according to market sources, and would likely eventually turn to the bond market to replace it. The cash deal comes after the offer Gigante made in February at the same price, and is the conclusion of a strategic process that had also contemplated an IPO for the joint venture formed in 1994. The deal is subject to regulatory approval, and is expected to close within 30 days. Bank of America Merrill Lynch advised Office Depot. Gigante did not respond to a request for comment on the transaction.
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BCI Looks to Markets to Fund US Buy
Banco de Credito e Inversiones (BCI) will look to issue shares or bonds after agreeing Friday to buy City National Bank of Florida in the US from Spain’s Bankia for $883m, it says. The Chilean bank calls the deal a “natural step in increasing business abroad,” and notes that it should close in the first quarter of 2014. City has $4.7bn in total assets, compared to BCI’s CLP17.57trn ($35.91bn). The buyer does not give any specifics as to the financing plans, but it has demonstrated access to the USD markets, most recently with a $500m 2023 bond sale in February, through Citi and JPMorgan. LXG Capital, Landmark Capital and Whitecap advised BCI, and Goldman Sachs advised Bankia on Friday’s deal.
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PdVSA Brings in Foreign Funds
As the markets wait to see how Venezuela’s new presidential administration will secure international funding, state-owned oil producer PdVSA has agreed to new debt financing from three sources. PdVSA and Russia’s Rosneft have agreed to form a joint exploration venture in Venezuela, the two say, which includes a $1.5bn loan to PdVSA. The Petrovictoria crude oil and natural gas exploration and production joint venture is to be 40% owned by Rosneft and 60% by PdVSA’s Corporacion Venezolana del Petroleo (CVP) subsidiary. CVP will get the $1.5bn loan, and Rosneft also says it will make a $1.1bn payment in two installments to enter the JV, without giving additional details. The joint venture will as part of the Carabobo-2 project move forward the pair’s development of heavy oil reserves. Carabobo-2 North and Carabobo-4 West blocks are included in the project, with reserves estimated at 40bn barrels, Rosneft says. Separately, PdVSA has agreed to a $2bn loan from Chevron, to support the Petroboscan JV the two have, according to local news and wire reports citing remarks from Oil Minister Rafael Ramirez. The loan pays Libor+450bp, though no details on maturity were immediately available. Also, PdDVSA has agreed to a $1bn revolver from US oil services company Schlumberger. Officials at the companies were not available for comment on the terms of the JV or any of the financing.