LatinFinance - March/April 2013 - 10

M&A

BBVA continues pensions exit
KOF shares, while the acquirer took on 1.01 billion pesos in debt.
BBVA continues to dispose its LatAm pension businesses, with
KOF also picked up 10% of Promotora Industrial Azucarera,
the $2 billion sale of its Chilean AFP Provida unit in February.
bringing its holding in the sugar producer to 36%. The 10.5 to
That followed the $530 million sale of Horizonte in Colombia in
11.0 times EV/Ebitda multiple was in line with KOF’s average
January. The Spanish bank has sold three LatAm pension funds,
for deals during the last three years, analysts said.
with only its Peru operation remaining.
Elsewhere in Mexico, América Móvil has agreed to acquire
In Chile, MetLife paid a smaller proportion of assets and
the Corporación de Medios Integrales unit of Mexico’s
earnings for Provida than other recent pension sales. The US
Corporación Interamericana de Entretenimiento (CIE). The
insurer paid $1.52 billion for 64.3% of Provida, and will tender
Mexican telecom is paying $132 million for the advertising and
publicly for the remainder. The deal offered around 4.4% of
publicity specialist. CIE will use
assets under management (AUM)
the proceeds to repay debt and for
or 11 times annual earnings. That
M&A rank by volume, year to February 15
working capital.
compares with the 4.7% of AUM and
BAML at the top
Mexico’s Axtel agreed to sell 883
13 times earnings that Prudential
telecommunication towers to MATC
Financial paid for AFP Cuprum when
Rank
Advisor
Value $m
# Deals
Digital, a subsidiary of American
it bought it for $1.5 billion in 2012
1
BAML
4,900
2
Tower Corporation, raising $250
– the most recent previous Chilean
2
Morgan Stanley
3,403
3
million to help it straighten out its
pension deal. BBVA sold its Mexican
3
JPMorgan
3,220
2
finances. The telecom is to lease
pension fund at around 14.5 times
4
Barclays
3,108
3
space from American Tower for
earnings in October.
5
Deutsche Bank
2,965
2
six to 15 years. The deal is a part
BBVA’s Colombian sale
6
Lazard
2,900
1
of a larger liability management
meanwhile came at a higher
operation, under which Axtel
multiple, 13.5 times earnings,
7
Goldman Sachs
2,000
1
swapped 51.6% of its 2017 bond
common among FIG sales in the
8
BBVA
2,000
1
and 72.5% of its 2019 bond for new
country. Grupo Aval’s Porvenir beat
9
BTG Pactual
944
4
2022 bonds and cash.
a field of bidders, said to include
10
Itaú
780
6
An investor group led by Grupo
Chile’s Habitat and fellow Colombian
Total
10,480
145
Lala chairman Eduardo Tricio
Grupo Sura, to win the asset.
Source: Dealogic
Haro has bought an 18.5% position
Goldman Sachs has been advising
in Aeromexico from Banamex,
BBVA on the regional sale process.
taking its holding to 20.2%. The
Bank of America Merrill Lynch
Total IB (M&A, ECM, DCM, Loans)
sale price implied a 2.19 billion peso
advised MetLife.
rank by fees, year to February 15
($172 million) value, based on the
In Brazil, BTG Pactual agreed
CS Leads
16.50 pesos per share price and on
to acquire the remaining pieces
Rank
Bookrunner
Revenue $m
% Share
Aeromexico’s 717 million shares
of Banco Bamerindus do Brasil,
1
Credit Suisse
36
13.9
outstanding at the end of 2012.
paying 418 million reais ($210
2
BTG Pactual
29
11.3
Banamex now holds 16.1% of the
million) to the deposit guarantee
3
Citi
22
8.3
airline. Tricio Haro also becomes the
fund, FGC. The deal gives BTG 98%
4
JPMorgan
20
7.7
airline’s chairman.
of the liquidated bank’s remaining
5
Santander
20
6.0
Meanwhile, the biggest deal
assets as well as debt, but excludes
6
BAML
16
8.0
agreed in Latin America last
the bank’s brand name.
year may be in doubt. The US
7
Itaú
12
2.0
Abril Educação, the education
Department of Justice has filed a
arm of Brazilian media conglomerate
8
Bradesco
11
5.0
suit to block AB Inbev’s $20 billion
Grupo Abril, has acquired Brazilian
9
Morgan Stanley
11
4.0
acquisition of half of Mexican
English school Wise Up, for 877
10
HSBC
10
4.0
brewer Grupo Modelo. The
million reais ($445 million). Abril
Total
260
100.0
government is worried about AB
will pay 487 million reais cash
Source: Dealogic
Inbev’s ability to charge consumers
for 56.7% of Wise Up with the
more if it controls both the Corona
remainder paid through the issuance
and Budweiser brands, two of the most popular in the US
of 8.1 million units of Abril. BTG Pactual advised the target.
market.
At the very least, it was a setback to the parties’ original
plans to close the deal by the end of March. After four years of
Coca-Cola Femsa (KOF) continued its consolidation drive in
AB Inbev owning an initial 50% of Modelo and long discussions
Mexico with an agreement to buy Grupo Yoli in an 8.81 billion
for the other half, the two sides agreed on the deal in July. LF
peso ($700 million) deal. Yoli received 42.4 million newly issued

More consolidation for KOF

10 LatinFinance

March/April 2013
LatinFinance - March/April 2013

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