Multinationals assess raising funds in Brazil
Valor Econômico
After the success of the initial public issuance of shares of Santander in Brazil, a subsidiary of the Spanish bank, other foreign companies assess going along and seeking partners for their subsidiaries in the Brazilian capital market. The idea is to attract the domestic investor and mainly the foreigner one with the perspective of growth of Brazil that is greater than that of the home countries of those companies, besides taking advantage of prices comparatively more favorable in the São Paulo Stock Exchange than in Stock Exchanges of rich countries. The sectors of infrastructure, financial institutions, commodities, retail, real estate and consumer goods in general, the ones that tend to benefit the most from the Brazilian economic expansion, should be the most active ones, believe the banks.
One name whose public offer has already been confirmed is the subsidiary of the French company Louis Dreyfus Commodities, which acquired Santelisa Vale. Another company mentioned by banks and lawyers is American Avon. The financial institutions did not want to comment on the issue, but Valor found out that Credit Suisse and BTG Pactual are getting ready to advise a foreign company of the maritime navigation sector that wants to issue shares in the Brazilian stock exchange. Spanish-Argentine Repsol, Portuguese Galp and Dutch Makro have also been mentioned.
Another name whose issue of shares in the country is pretty obvious would be French Carrefour, which was sought by all investment banks with the most different proposals in that regard. The group, however, seems to have be surplus cash and does not want to carry out the deal at this time, as it has signaled to law firms and financial institutions.
In industrial, energy, telecommunications and financial sectors the price/profit ratio in the Brazilian stock market is even more favorable than in China, according to a study of Itaú Securities. "With the investment grade obtained by Brazil and the success of the country amid the crisis, there are countless funds from all over the world seeking alternatives to increase their investment in the Brazilian stock market", says Guilherme Paes, responsible for the BTG Pactual investment bank. "The subsidiaries of foreign companies in Brazil are a good diversification alternative to these funds", he says.