HSBC the large UK bank has stopped two foreign investments. Whilst not one of the banks under attack this week, HSBC is obviously feeling the pinch.
The first is the disposal of 18.68 of Mexican microfinance company Financiera Independencia. Secondly it is not pursuing its purchase of 51% of the Korean Exchange Bank.
Showing posts with label Mexico. Show all posts
Showing posts with label Mexico. Show all posts
Friday, 19 September 2008
Thursday, 18 September 2008
HSBC Drops Financiera Independencia
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP), (Independencia) a Mexican microfinance lender of personal loans to lower income segment individuals, announced today that HSBC Overseas Holdings UK Limited (HOHU), has informed the company of its intention to divest its entire stake in Independencia, which represents 126,999,000 shares equivalent to 18.68% of total shares outstanding. At the same Independencia's controlling shareholders have indicated interest in increasing their ownership stake in Independencia by acquiring 76,999,000 shares owned by HOHU. The shares will be acquired through the two trusts that each group of individuals created to hold their stake in Independencia. The company has been informed that HOHU and these trusts will formalize such purchase and sale transaction through a private agreement pursuant to the right of first refusal provided under the shareholders' agreement in place among them and HOHU, which shall be thereafter terminated.
HSBC Overseas Holdings UK Limited mentioned that "since we initially met Financiera Independencia we liked very much its business model, its positioning, its management team and its profitability. Those characteristics remain as strong as ever. HOHU's decision to divest its stake in the company is consistent with HSBC's global strategy to focus in its core banking business".
Simultaneously, HSBC Mexico, S.A. (HSBC Mexico) confirmed to Independencia its willingness to increase Independencia's outstanding line of credit from Ps 2,000 million to Ps 2,500 million.
Jose Rion, Chairman of the Board of Independencia, commented "we have very much enjoyed having HOHU as our strategic partner and are sorry to see them leave the partnership. However, we recognize that their departure increases our flexibility going forward." The HSBC group will continue to hold a seat in Independencia's board.
As a result of HOHU's exit, Independencia's board has decided to call to an Extraordinary Shareholders' Meeting to discuss an amendment of its by-laws and a reduction in its shareholders' equity through the amortization of up to a total of 50 million shares at a reimbursement price per share of Ps 12.35, which is exactly the same price at which the controlling shareholders will buy shares directly from HOHU. If this transaction is approved at the Shareholders' Meeting, the total shares outstanding will be reduced from 680 million shares to 630 million shares. In addition, all the shareholders of Independencia may participate in the capital reduction proportionally to their stake in the company. The controlling shareholders have informed Independencia that in case that HOHU still owns any Independencia's shares after the amortization takes place, they will be acquiring such shares.
After the amortization is completed, the equity to assets ratio will be reduced from 39.8% to approximately 25.6%, resulting in a solid equity ratio to continue supporting strong asset growth in the near future. With such reduction in excess capital, Independencia reaffirms its commitment to use its capital in the most efficient way without compromising growth. Moreover, the resulting equity ratio is more in line with that of the Mexican banking industry.
The share amortization to be proposed at the Shareholders' Meeting is a transaction highly accretive to current shareholders (5.4% in proforma 2008 EPS) so we expect the Shareholders' Meeting to approve this transaction.
Through the above mentioned transactions, the controlling shareholders of Independencia will increase its ownership stake in the company from 63.93% to at least 81.22%.
HSBC Overseas Holdings UK Limited mentioned that "since we initially met Financiera Independencia we liked very much its business model, its positioning, its management team and its profitability. Those characteristics remain as strong as ever. HOHU's decision to divest its stake in the company is consistent with HSBC's global strategy to focus in its core banking business".
Simultaneously, HSBC Mexico, S.A. (HSBC Mexico) confirmed to Independencia its willingness to increase Independencia's outstanding line of credit from Ps 2,000 million to Ps 2,500 million.
Jose Rion, Chairman of the Board of Independencia, commented "we have very much enjoyed having HOHU as our strategic partner and are sorry to see them leave the partnership. However, we recognize that their departure increases our flexibility going forward." The HSBC group will continue to hold a seat in Independencia's board.
As a result of HOHU's exit, Independencia's board has decided to call to an Extraordinary Shareholders' Meeting to discuss an amendment of its by-laws and a reduction in its shareholders' equity through the amortization of up to a total of 50 million shares at a reimbursement price per share of Ps 12.35, which is exactly the same price at which the controlling shareholders will buy shares directly from HOHU. If this transaction is approved at the Shareholders' Meeting, the total shares outstanding will be reduced from 680 million shares to 630 million shares. In addition, all the shareholders of Independencia may participate in the capital reduction proportionally to their stake in the company. The controlling shareholders have informed Independencia that in case that HOHU still owns any Independencia's shares after the amortization takes place, they will be acquiring such shares.
After the amortization is completed, the equity to assets ratio will be reduced from 39.8% to approximately 25.6%, resulting in a solid equity ratio to continue supporting strong asset growth in the near future. With such reduction in excess capital, Independencia reaffirms its commitment to use its capital in the most efficient way without compromising growth. Moreover, the resulting equity ratio is more in line with that of the Mexican banking industry.
The share amortization to be proposed at the Shareholders' Meeting is a transaction highly accretive to current shareholders (5.4% in proforma 2008 EPS) so we expect the Shareholders' Meeting to approve this transaction.
Through the above mentioned transactions, the controlling shareholders of Independencia will increase its ownership stake in the company from 63.93% to at least 81.22%.
Wednesday, 3 September 2008
Financiera Indpendencia CFO Appointed
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP), (Independencia) a Mexican microfinance lender of personal loans to lower income segment individuals, today announced that it has appointed Mr. Didier Mena Campos as Chief Financial Officer (CFO) effective as of September 1, 2008. Mr. Mena will replace Mr. Juan Garcia Madrigal, who is leaving to pursue personal and professional endeavors.
Commenting on this management change, Mr. Noel Gonzalez, Chief Executive Officer of Financiera Independencia, said: "I am delighted to welcome Didier as our CFO. His 14 years of experience dealing with financial institutions in Mexico and Latin America in investment banking and financial planning are an important addition to our management team. He brings to the company strong leadership skills and a valuable expertise in capital markets and strategic transactions that will help us in continue developing our strategy. Having dealt with the investor community in the past, we are sure that Didier will enhance our dialogue with current and potential investors."
Mr. Gonzalez also noted: "We appreciate Juan's hard work and many contributions to the company over the last five years and wish him well in his future endeavors."
Prior to joining Financiera Independencia, Mr. Mena was Managing Director at Credit Suisse where he was co-responsible of investment banking for Central America and certain financial institutions in Mexico. Mr. Mena joined Credit Suisse in 2001 and participated in relevant transactions in Mexico and Latin America including, among others: Financiera Independencia's IPO, Compartamos' IPO, Banorte's issuance of capital securities (2006), Bital's sale to HSBC, Colpatria's strategic partnership with GE Money, Bancolombia's mergers with Conavi and Corfinsura and BAC Credomatic's strategic partnership with GE Money. Prior to joining Credit Suisse, he spent six years in BBVA Bancomer where his last two positions were as Deputy Director of the Asset and Liabilities Committee and Deputy Director of Financial Planning as part of the CFO team. He also participated in key transactions such as: Bancomer's minority sale to BBVA.
Commenting on this management change, Mr. Noel Gonzalez, Chief Executive Officer of Financiera Independencia, said: "I am delighted to welcome Didier as our CFO. His 14 years of experience dealing with financial institutions in Mexico and Latin America in investment banking and financial planning are an important addition to our management team. He brings to the company strong leadership skills and a valuable expertise in capital markets and strategic transactions that will help us in continue developing our strategy. Having dealt with the investor community in the past, we are sure that Didier will enhance our dialogue with current and potential investors."
Mr. Gonzalez also noted: "We appreciate Juan's hard work and many contributions to the company over the last five years and wish him well in his future endeavors."
Prior to joining Financiera Independencia, Mr. Mena was Managing Director at Credit Suisse where he was co-responsible of investment banking for Central America and certain financial institutions in Mexico. Mr. Mena joined Credit Suisse in 2001 and participated in relevant transactions in Mexico and Latin America including, among others: Financiera Independencia's IPO, Compartamos' IPO, Banorte's issuance of capital securities (2006), Bital's sale to HSBC, Colpatria's strategic partnership with GE Money, Bancolombia's mergers with Conavi and Corfinsura and BAC Credomatic's strategic partnership with GE Money. Prior to joining Credit Suisse, he spent six years in BBVA Bancomer where his last two positions were as Deputy Director of the Asset and Liabilities Committee and Deputy Director of Financial Planning as part of the CFO team. He also participated in key transactions such as: Bancomer's minority sale to BBVA.
Tuesday, 2 September 2008
Evercore Partners
Evercore Partners is an investment banking boutique and investment firm. Evercore's Advisory business counsels its clients on mergers, acquisitions, divestitures, restructurings and other strategic transactions. Evercore's Investment Management business manages private equity funds and traditional asset management services for sophisticated institutional investors. Evercore serves a diverse set of clients around the world from its offices in New York, San Francisco, London, Mexico City and Monterrey, Mexico. More information about Evercore can be found on the firm's Web site at www.evercore.com. EVR-X.
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