Latin Finance - May/June 2011 - 10

M&A

Televisa Gets Aggressive

CNAA, including the assumption of the company’s long term debt. Brazilian call center company Contax announced it has In the year through April 15, a total of 441 M&A deals have taken acquired local Grupo Allus for a total enterprise value of 332 place in LatAm, up from 415 during the same period in 2010, according to Dealogic. However, the value of deals as of April 15 million reais. According to Contax, the deal implies an EV/Ebitda multiple of 5.8x-6.7x, including the assumption of net debt of pales in comparison to those of the same period in 2010. Total around 55 million reais. Contax says it is ﬁnancing the deal with deal value amounted to $40.9 billion, about half of the $81.3 cash on hand. Goldman Sachs advised Allus, while Santander billion registered in the same period of 2010. advised Contax. Mexico’s Grupo Televisa has been busy, announcing two Estre Ambiental, the Brazilian separate acquisitions in April alone. waste management company, has M&A Rank by Volume, Year to April 15 It announced the acquisition of 50% acquired Cavo Serviços e Saneamento Santander jumps ahead of Iusacell for about $1.60 billion. from Camargo Correa for around 610 Michel Morin, telecom equity analyst Rank Advisor Value $m # Deals million reais. BTG Pactual advised at Barclays, estimates a 21x EV/Ebitda 1 Santander 12,663 10 Estre Ambiental while Credit Suisse multiple based on Iusacell’s 2009 2 Goldman Sachs 12,584 13 advised Camargo. BTG is also helping Ebitda. The deal achieves Televisa’s 3 Banco Itaú 9,617 17 to provide Estre with ﬁnancing for the long-stated desire to get into the acquisition. 4 Lazard 5,641 2 mobile telecom space. BTG Pactual took 65% of builder 5 Citi 4,582 9 Televisa also purchased the 41.70% WTorre’s property portfolio for about 6 Rothschild 3,419 7 stake it did not yet own in Cablemás 1.8 billion reais. BTG will form a new for $402.16 million equivalent. The 7 JPMorgan 3,138 10 vehicle consisting of the majority deal includes the prepayment of $225 8 BofA Merrill 2,678 6 of WTorre’s property assets, which million in outstanding Cablemás senior 9 HSBC 2,492 2 it values at around 5.3 billion reais. guaranteed notes, and the issuance 10 Credit Suisse 2,368 7 The deal consists of a 50% stake in of 25 million new Televisa shares to Subtotal 27,475 51 WTorre’s Ventura property, a 40% Cablemás shareholders, valued at Total 40,865 441 stake in the Brookﬁeld property, $123 million equivalent. Televisa Source: Dealogic two towers of the JK Complex, holds minority stakes in several undeveloped land in Marginal cable distribution subsidiaries, like Pinheiros, a project in Porto Maravilha, Cablevisión. M&A rank by Fees, Year to April 15 the Petrobras headquarters, 50% of Credit Suisse takes the lion’s share a commercial building in Martinal Rank Bank Revenue $m % Share Pinheiros, and several other buildings. Mining giant Vale acquired

M&A Still Hot in Brazil

Johannesburg-listed Metorex, a copper 2 JPMorgan and cobalt miner with assets in Zambia 3 Banco Itaú and the Congo, for $1.13 billion. The 4 Rothschild deal represents a 20% premium to 5 Goldman Sachs Metorex’s closing price of 610 rand per Subtotal share on March 25. “A 20% premium [to the target’s share price] is not that Total high,” says Christopher Ecclestone, Source: Dealogic mining strategist at Hallgarten. “Usually deals like this carry premiums of 40%-70%.” Société Général advised Vale, while Standard Bank advised Metorex. Brazil’s CPFL Energia acquired local wind farm operator Jantus for 950.0 million reais plus net debt of 544.2 million reais. “We see this acquisition as accretive for CPFL and expect a slightly positive market reaction,” says a report by Barclays. The sellers are Liberty Mutual Insurance, Citi, Black River Asset Management, Carbon Capital Markets, Matthew Alexander Swiney, and other minority shareholders. Itaú acted as advisors to CPFL Energia. Santander and Banco Votorantim acted as advisors to the sellers. Back on the acquisition trail, BP announced the acquisition for $680 million for an 83% stake in Brazilian ethanol producer

Credit Suisse

Chilean retailer Cencosud says UBS acquired a 38.6% stake in Jumbo Supermarkets, its Argentina subsidiary, for $442 million. UBS will buy the stake from PE funds Capital International, GEM, Palermo Argentina, SCF Chile Holdings, BSSF Chile Holdings and Pinebridge, and multilateral bank IFC. Celfín says the move is a positive one for Cencosud as it removes uncertainty surrounding the value of the stake. Meanwhile, well-known Chilean winemaker Viña Concha y Toro acquired California’s Fetzer Vineyards and related assets from Brown-Forman, the company that produces Jack Daniels whiskey, for $238 million. A Concha y Toro spokesman tells LatinFinance that the company obtained a $125 million bridge loan from Deutsche Bank maturing six months after the deal closes in April. LF
19 10 103 151 12.50 6.50 68.20 100.00

31 25 19

20.20 16.30 12.70

Chilean Deal Making

UPDATE
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10 LATINFINANCE

May/June 2011

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Latin Finance - May/June 2011

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