Latin Finance - January/February 2012 - 10

Equity

Happy Farewell to 2011

announcement. Shares popped 10% the day after the sale. Buyers were also encouraged by the bank’s one-year pledge not to sell additional shares. Bankers and would-be issuers were no doubt happy to see the Santander, Bank of America Merrill Lynch and Credit Suisse calendar turn past what was a lackluster 2011. Though Santander managed the international portion, while Santander and Chile’s $950 million follow-on met with success in December, new issuance volumes from LatAm reached a disappointing $31.5 LarrainVial handled Chilean orders. The deal came the same week as Santander’s pullout from billion from 79 deals as of December 23, falling from $54.77 Colombia, and likely precedes an additional selldown in Santander billion from 77 issues during the same period in 2010, according Brasil – though it is not known if it will to Dealogic data. o er more shares in a large market True, the quantity of deals was a ECM Rank by Volume, Year to December 23 deal or through smaller o erings. touch higher, but issuers have larger Itaú keeps lead Also in Chile, government ﬁnancial concerns, namely the di culties of Rank Bookrunner Value $m # Deals entity Corfo pulled its selldown of 40% achieving target pricing in a market of water utility Essal after it couldn’t where many deals have performed 1 Itaú BBA 3,531 26 get a minimum price. The deal was poorly in the secondaries. 2 Santander 2,600 16 essentially meant to be a repeat, albeit How 2012 unfolds will very much 3 Credit Suisse 2,546 19 a smaller one, of earlier Corfo sales depend on events in Europe and 4 Citi 2,396 18 in Aguas Andinas, Essbio and Esval, the degree of risk appetite among 5 JPMorgan 2,201 12 under a broad government plan to sell the European and US investors 6 BofA Merrill Lynch 2,132 13 assets to cover reconstruction costs responsible for driving the size of 7 BTG Pactual 2,120 14 from the 2010 earthquake. Banchile, LatAm equity deals. 8 Corredores Asociados 1,767 5 Bank of America Merrill Lynch and Once markets open up, bankers 9 Bradesco 1,644 10 IMTrust were managing the deal. say follow-ons from liquid well-known 10 Morgan Stanley 1,537 10 issuers are likely to come ﬁrst. If the successes in late 2011 of similar Total 31,485 79 Colombia’s market continued to transactions from Arcos Dorados, TIM Source: Dealogic churn out deals, but showed it Participações and Santander Chile are wasn’t invincible after an IPO from any gauge, prospects look promising. ECM Rank by Fees, Year to December 23 ContourGlobal LatAm had to be pulled. IPOs, however, may be another Itaú wins proﬁt stakes The company’s 273 billion peso IPO story, and will be considered mostly Rank Bookrunner Revenue $m % Share failed to get a minimum demand level, on a case-by-case basis, with few 1 Itaú BBA 96 13.5 triggering an automatic cancelation. or none likely to be seen in the ﬁrst 2 Credit Suisse 73 10.3 The unit of US-based energy quarter of 2012, bankers say. Any 3 JPMorgan 65 9.2 investment company ContourGlobal number of the postponed deals from had planned to sell about 28% of 2011 could be resurrected in 2012 4 BTG Pactual 62 8.7 itself. Bancolombia and Corredores if market conditions become more 5 Santander 54 7.6 Asociados were managing the favorable. Total 710 100.0 sale, intended to raise funds for Meanwhile, bankers are optimistic Source: Dealogic new projects. The company’s main about well-known Brazilian travel operating assets include a stake in the name CVC, which is preparing an Termopaipa and Termoemcali power plants in Colombia, as well as all-secondary share o er through Bank of America Merrill Lynch a wind farm and two hydroelectric projects in Brazil. (BAML), BTG Pactual, Itaú, JPMorgan and Morgan Stanley. This comes after Grupo de Inversiones Suramericana’s Brazil Travel, a shell-company assortment of established (GrupoSura) raised 3.5 trillion pesos ($1.8 billion) in a followoperators across the country, will also try, while Spain’s Isolux on to pay for its acquisition of ING assets, but failed to reach the is preparing a Brazil-based spino of EM operations for the Bovespa, via Credit Suisse and Santander. In Chile, Italy’s Atlantia original target size. As a result, the conglomerate had to bring in the IFC, is also eyeing a similar transaction for its Chilean toll road assets, Sociedades Bolivar and M&A advisors Bancolombia and UBS as with Credit Suisse, Goldman Sachs, Santander and UBS. co-investors. Bancolombia and Santander managed the sale after scaling back the original and more ambitious plan to pursue a broader 144a and local o ering. LF Last year, Santander continued reducing its LatAm positions in order to raise funds for use at home, selling $949 million in UPDATE ADSs from its Chilean operations. The bank got $2.01 billion > in competitive demand from buyers, who saw a chance to pick For daily ECM news, see www.latinﬁnance.com up a quality asset that had dropped about 7% in price after

Chinks in Colombia’s Armor

Chile Selldowns

10 LATINFINANCE

January/February 2012

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Latin Finance - January/February 2012

Table of Contents for the Digital Edition of Latin Finance - January/February 2012