LatinFinance - July 2013 - 8

M&A

Beefing up
A 5.85 billion real ($2.73 billion) deal between JBS and Marfrig, agreeing to buy out the stakes of Italy’s Assicurazioni Generali
agreed in early June, illustrated the contrasting fortunes of the
in its pension and insurance business for $858 million. The
two Brazilian meatpackers. Though nobody in Brazil’s beef sector Mexican banking group takes full control of Seguros Banorte
has it easy, JBS had been growing and had ratings upgrades,
Generali and Pensiones Banorte Generali, following its pension
while others have been lowered as they face debt challenges.
business acquiring BBVA Bancomer’s late last year.
Marfrig made a big step to clear up its debt burden with the
A $3 billion equity sale was expected to help pay for the
sale of the Seara Alimentos poultry and pork unit to JBS, done
growth.
entirely in assumed debt. The lesslevered Marfrig will now focus on its
M&A rank by volume, year to June 14
beef operations. The debt assumed in
Carlos Slim’s Inbursa is also buying
Credit Suisse steps up
the transaction included maturities
out European interests, picking up
Rank
Advisor
Value $m
# Deals
from 2013 to 2017, and is split
a 3.7% stake in itself from Spain’s
1
Goldman Sachs
14,699
12
roughly evenly between dollars and
CaixaBank for $512 million, it says.
2
Credit Suisse
8,728
14
reais.
The deal left another 6.4% to be sold
JBS should nevertheless tread
through the public follow-on due in
3
Morgan Stanley
7,032
9
with care. It picked up quality assets
late June. Caixa aims to reduce a 20%
4
BAML
6,557
5
that firmly established it in the white
stake to 10% to help straighten its
5
BTG Pactual
5,959
11
meats business, following a 200
finances back home.
6
JPMorgan
4,301
9
million real purchase in May of pork
Grupo Gigante finally agreed
7
Barclays
3,966
5
and poultry production assets from
to buy the remaining 50% of Office
8
Bradesco BBI
3,501
10
Brasil Foods. But JBS has added debt
Depot de México it does not own
9
UBS
3,442
8
at the same time as committing to
from Office Depot for 8.77 billion
10
Deutsche Bank
3,365
3
lowering its leverage. CEO Wesley
pesos ($691 million), it says.
Total
47,189
660
Batista insists the debt reduction will
The buyer arranged a one-year
still go according to plan, even if it
Source: Dealogic
bridge loan through BBVA and Credit
takes longer. Ratings agencies put
Suisse, and will likely eventually
JBS on negative watch, undoing their
turn to the bond market to replace it.
Investment banking (M&A, ECM, DCM,
previous positive moves.
The cash deal comes after the offer
Loans) fees ranking, year to June 14
Elsewhere in Brazil, for-profit
Gigante made in February at the same
Itaú, Morgan Stanley move up
education powerhouses Kroton
price.
Rank
Bookrunner
Revenue $m
% Share
Educacional and Anhanguera
BBVA has finished its pension
1
Credit Suisse
100
11.1
Educacional combined, with Kroton
divestiture plans, agreeing to sell
2
Citi
83
9.1
paying 5 billion reais in an all-stock
its Peruvian pension fund BBVA
3
Itaú
79
8.7
deal. Kroton was to issue 198.8
Horizonte for $544 million to Grupo
4
Morgan Stanley
68
7.5
million new shares to pay 1.36 shares
Sura and Scotia’s Profuturo. The
5
JPMorgan
67
7.4
for each of Anhanguera’s. Analysts
buyers will each take 50%. BBVA
say the two businesses complement
has exited its Chilean, Mexican and
6
BTG Pactual
67
7.4
each other geographically, as
Colombian pensions since October.
7
Santander
47
5.2
well as in terms of strengths, with
Another Spaniard raising funds
8
BAML
43
4.7
Kroton stronger in distance learning
was Telefónica, parting with 40% of
9
Bradesco
42
4.7
and Anhanguera in class-based
its assets in El Salvador, Guatemala,
10
HSBC
33
3.6
instruction.
Nicaragua and Panama to free up
Total
907
100.0
Brazilian homebuilder Gafisa
$500 million. Guatemalan familySource: Dealogic
finally decided what to do with its
owned conglomerate Corporación
high-end Alphaville unit, selling
Multi Inversiones will take a stake
a 70% stake to private equity firms Blackstone Real Estate
in a holdco set up to house the assets, and will pay up to an extra
Advisors and Patria Investimentos for 1.41 billion reais. An IPO $72 million depending on the performance of the businesses. The
had been considered during months of strategic analysis with the move is part of a larger strategy for Telefónica to raise funds from
help of Rothschild.
its most valuable assets without ceding control. IPOs are also
EBX continued to court powerful strategic partners, with OGX possible, analysts say.
selling a 40% piece of one of its oilfields to Malaysia’s Petronas
Finally, Chile’s Banco de Crédito e Inversiones (BCI) set foot
for $850 million. Petronas also has the option to acquire 5% of
in the US, agreeing to buy City National Bank of Florida from
OGX itself from Batista through April 2014.
Spain’s Bankia for $833 million. An equity follow-on and a bond
Banorte continues to consolidate its businesses in Mexico,
sale are both possibilities to pay for the purchase. LF

Caixa sells stake

8 LatinFinance

July 2013

LatinFinance - July 2013

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