Newsletter Ninth Edition

AMEXCAP
AMEXCAP Newsletter - Exclusively for Members
NINTH EDITION, 2012 DECEMBER 13, 2012
 
Transactions & Headlines
  

 

Mexico's Maxcom Telecomunicaciones SAB agrees to US$59 million Private-Equity Takeover. Maxcom agreed an offer by Ventura Capital Privado S.A. to buy all of the firm's shares for MXN 2.90 apiece for a deal valued at MXN 764 million (US$59 million). The buyout firm pledged to add capital to help the struggling company compete against Carlos Slim's America Movil which controls 80 percent of Mexico's landline phone base. As part of the transaction, the private equity firm seeks to increase Maxcom's capital by US$22 million and refinance the firm's US$200 million debt at 11 percent due in 2014.  (Bloomberg, December 5, 2012).

 

FIBRA Hotelera Mexicana Goes Public on the Mexican Stock Exchange.  This is the first hotel-focused Real Estate Investment Trust (REIT) in Mexico and sold 194.4 million shares at a price of US$1.39 (MXN 18.50) for a total issuance of about US$277.7 million (MXN 3,600 million). According to a public filling at the Mexican Stock Exchange (BMV), 64.9% of the offering was placed in Mexico while the remaining 35.1% was placed internationally. The issuance represents 71% of outstanding shares and excludes the over-allotment. Including the over-allotment option, the IPO amounts to approximately US$319.3 million. FIBRA Hotelera's initial public offering makes it Mexico's second REIT or FIBRA as it stands in Spanish for the Mexican vehicle. The FIBRA is a new instrument that appears to be working in Mexico as evidenced by FIBRA Ono which issued  US$300 million in its initial public offering, raised an additional US$700 million through a secondary offering, and whose stock's value has risen about 70% since the IPO (November 30, 2012).

 

Advent International Completes Transition of Leadership Team in Mexico. Luis Solórzano will be responsible for the firm in the country. The change results from a gradual plan that started in the beginning of 2012 and concluded in November.  Advent International ("Advent"), a leading private equity firm, confirms the designation of Luis Solorzano as partner responsible for heading the firm's office in Mexico. Advent has been operating continuously in Mexico for 16 years and has completed over 20 private equity transactions in the country.  The Mexico office is part of the firm's Latin American network where the global player has a strong foothold. In this new stage for Advent in Mexico, operations will be headed by Luis Solorzano and supported by a leadership team comprised of Santiago Castillo and Antonio Moya-Angeler, both partners at Advent who have been at the firm 9 and 12 years, respectively. After a gradual and planned succession, Luis Solorzano will be in charge of the office previously headed by Alfredo Alfaro who after 16 years at the helm of Advent decided to transition into new professional endeavours. Advent has actively contributed to the private equity industry at a global level completing over 270 transactions throughout a 28 year horizon. Advent entered Mexico in 1996 and has made 22 investments such as Dufry, Gayosso, DolEx, Milano, Hildebrando, and IMC. Luis Solorzano received an M.B.A. from Harvard Business School and a B.S. in Economics, cum laude, from the Instituto Tecnologico Autonomo de Mexico. During his 12 years at Advent, Luis has led transactions and has participated actively in operations of portfolio companies such as Aerodom and Dufry. Santiago received a B.S. in mechanical and electrical engineering, summa cum laude, from the Iberoamericana University in Mexico City and an M.B.A. from Stanford University. At Advent, Santiago has led investments in the retail and financial services sectors. Antonio Moya-Angeler received a degree in business administration from the Universidad Pontificia Comillas (ICADE) in Spain and earned an M.B.A. at MIT's Sloan School. At Advent, Antonio has led investments in retail, restaurants, and airport sectors (November 28, 2012).

 
Recent Events
 
Closed-doors introductory pitch session at the ITESM Campus Santa Fe.  On December 6, 2012, the Monterrey Tec (ITESM) Santa Fe and AMEXCAP hosted a closed-doors pitch session where a variety of entrepreneurs and business owners made their pitch to 7 GP firms (AMEXCAP members) in an effort to seek financial / strategic sponsors. Contact AMEXCAP to get coordinates / pitch deck of the businesses that presented on the 6th and whose names can be downloaded in this link: Download
 
 
Industry Reports, Insights & Articles
 

 

Fundraising in the Longer Term Across the Private Equity Industry, Preqin Presentation at Super Investor 2012: PE Assets Under Management Hits US$3.0 trillion in 2012 but, compared to other financial instruments, the industry is relatively small leaving vast room for long term growth. Download presentation: Download

 

The Rise of Mexico: America Needs to Look Again at its Increasingly Important Neighbour. The Economist bullish on Mexico, November 24, 2012. Read article in PDF: Download

Upcoming Events
 

 

AMEXCAP's 8th Annual PE Summit. February 2013, Mexico City. Stay tuned for details.

If you would like to share a story or contribute to the newsletter please reach out to rgranja@amexcap.com
 
Kind Regards,
 
AMEXCAP

Mexican Association of PE & VC Funds

Upcoming Events

 

 

AMEXCAP Annual Summit (Mexico City) February, 2013