IMPSA to IPO Renewables Unit

Argentina’s Industrias Metalurgicas Pescarmona (IMPSA) has filed to spin off its renewables business through a Bovespa IPO. If successful, the moves would mark the second time an Argentine entity lists BDRs on the Bovespa, though Venti, as the unit is called, is technically a Luxembourg company. The first issuer was Banco Patagonia, which listed shares in Brazil in 2007. However, Venti, which is controlled by the Pescarmona family, has renewable energy assets in LatAm and Southeast Asia. It’s LatAm holdings include wind and hydro in Brazil, which accounts for the majority of revenues, Argentina, Chile, Venezuela and Colombia, while in Southeast Asia, it owns assets in Vietnam and Malasia. In 2009, hydro revenues totaled BRL265m while its wind businesses generated BRL133m. Total Ebitda in 2009 came in at BRL120m. Proceeds of the offering will go to investments in existing wind parks and hydro facilities (45%), new projects (30%) and working capital (25%). In December, IMPSA Wind, the wind power unit of the group that will become part of Venti, won concessions to operate 8 lots in the Brazilian state of Ceara totaling 211MW. That will likely demand investments of over BRL1bn. Total wind investments in Brazil in the coming years are expected to total BRL2.5bn, according to executives close to the initiatives. Bank of America-Merrill Lynch and BTG Pactual have been hired to lead the deal.