Corporate Financing Week RSS Feed

Bilfinger Pulls Out In Change of Strategy

Thu, 09 Feb 2012 00:00 GMT

CFW View: By relinquishing a 10% stake in its Nigerian subsidiary, Bilfinger Berger (Bilfinger) is slowly, yet determinately, pulling out of Nigeria - where it has been active since the 1960s. We believe the decision to divest the profitable Julius Berger Nigeria (Julius) has been prompted by political and economic risks - most notably, the concentrated violence in the Niger Delta, an increasing threat from Boko Haram and a consistently weak Nigerian naira.

The Wait Is Over: Facebook Files For IPO

Wed, 08 Feb 2012 00:00 GMT

It will be remembered as the corporate financing world's worst kept secret. Indeed, after months of speculation, US-based social networking giant Facebook has submitted its prospectus for a US$5bn IPO to regulators.

Batelco Exits STel, Leaves Door Open For Future Indian Investments

Thu, 09 Feb 2012 00:00 GMT

Batelco's 100%-owned subsidiary BMIC is to sell its 42.7% equity in troubled Indian operations STel for BHD65.8mn (US$174.5mn) to local partner Sky City Foundation Limited. BMIC said it decided to actively pursue the sale of its stake in STel as early as April

QEWC Embarks On Geographical Expansion

Thu, 09 Feb 2012 00:00 GMT

CFW View: In an attempt to increase its regional footprint and take advantage of Jordan's dire need of electricity generating capacity, Qatar Electricity & Water Company (QEWC) has bought a 23.3% stake in Jordan's Amman East power plant. However, QEWC is not alone in seeking these lucrative opportunities, and Saudi Arabia's ACWA Power International (ACWA) has already established a major presence in Jordan's energy sector.

All Hail The Return Of The Monster Merger

Wed, 08 Feb 2012 00:00 GMT

Although everyone will have seen it coming, Swiss commodities trader Glencore International 's move to snap up Anglo-Swiss mining firm Xstrata will certainly not fail to turn a few heads.

Junk Bond Window Remains Wide Open

Wed, 08 Feb 2012 00:00 GMT

What a week it was last week for the high yield bond market. The five day period ended February 3 2012 saw the highest volume of junk bonds issued on record.

Schaeffler Completes Largest Euro-Denominated Corporate Loan Deal In 6 Months

Wed, 08 Feb 2012 00:00 GMT

With deep-pocketed US investors having lead the way, German auto parts supplier Schaeffler has inked the largest Euro-denominated corporate syndicated loan in over six months.

Brazil's Itau to take Redecard Private

Wed, 08 Feb 2012 00:00 GMT

Whilst European banks are frantically selling off assets; banks in other parts of the world seem less effected by economic woes.

PE Real Estate Fundraising To Go To The Top Tier

Wed, 08 Feb 2012 00:00 GMT

With private equity funds being forced to endure a tough environment for fundraising in the aftermath of the real estate downturn, investors are becoming increasingly careful as to which horse they choose to back. With PE returns not what they once were, institutional investors have found themselves with less to reinvest and are set to become increasingly careful with their money as a result.

High Premiums And Cheap Credit Distort Litmus Test For Brazilian Airports

Mon, 06 Feb 2012 00:00 GMT

CFW View: The eagerly awaited auction for the concession of three international airports saw an average premium of 347% on the minimum bid price. Whilst the outcome serves as a display of confidence in the Brazilian aviation sector and the infrastructure business environment in general, the high premiums and the absence of more established players obtaining the winning bids raises some concern over investment returns. At the same time, the offer of cheap BNDES financing raises familiar questions over the commercial viability of projects.

Multimedia Polska Acquisition Of Strategic Value To Several Operators

Tue, 07 Feb 2012 00:00 GMT

Consolidation in the Polish cable market looks set to continue as local press reports state that Multimedia Polska has selected JP Morgan as advisors for a potential sale.

Merger Collapse Presents New Opportunities

Mon, 06 Feb 2012 00:00 GMT

Vodafone has abandoned its attempt to merge with Greek rival Wind Hellas as a result of regulatory opposition from the European Union. European regulators are against the Greek mobile market being reduced to just two operators, as the merged entity would have been left with only market leader Cosmote for competition. BMI welcomes the European Union's emphasis on competition, and we argue that the collapse of the merger could see new forms of cooperation and alternative acquisitions that would be of greater benefit to Vodafone.

Andina/ Polar Merger Could Be Prelude To Even Bigger Deals

Mon, 06 Feb 2012 00:00 GMT

Chilean Coca-Cola bottlers Embotelladora Andina and Embotelladoras Coca-Cola Polar have signed a preliminary agreement to merge their operations. The all-share deal would see Andina take an 80% stake in the enlarged firm. For the 12 months to September 2011 the combined business would have generated volumes of 641mn cases and revenues of US$2.56bn, making it the fifth largest Coca-Cola bottler in the world. The move is in line with growing consolidation within the Latin American soft drink industry and from here Andina should be in a strong position to expand further.

Sectoral Diversification Ambitions Fuels Acquisitional Interest In Hi-Mart

Mon, 06 Feb 2012 00:00 GMT

South Korean mass grocery retailers Shinsegae, GS Retail and Lotte Group are reportedly contemplating an acquisition of domestic consumer electronics retailer Hi-Mart. While Hi-Mart is operating around 301 consumer electronics stores in South Korea, it also has a considerable presence on the online retailing platform. The companies' acquisition interest in Hi-Mart can be linked to the fast-consolidating and increasingly crowded nature of the South Korean mass grocery retail (MGR) market, which underlines the need for sectoral diversification so as to secure their future prospects. Given its massive financial clout, Lotte looks to be in a stronger fiscal position to acquire Hi-Mart, and its acquisition should complement nicely with its existing strengths in e-retailing.

Statoil's Exit From West Qurna-II Unlikely To Be Repeated At Other Giant Southern Fields

Fri, 03 Feb 2012 00:00 GMT

Norway's Statoil appears to be close to selling its 18.75% stake in the second phase of southern Iraq's West Qurna oil field (known as West Qurna-II).