Monday, January 25, 2010

Latin America Investment Daily 1.25.10

Top Calls
Braskem SA (BRKM5.SA) — Alert: Announced Acquisition of Quattor and Capital Increase
Braskem announced today that it will acquire the following assets from Unipar (UNIP6.SA; R$1.20; Not Rated): 60% stake in Quattor Participaçoes, 100% of Unipar Comercial, and 33% of Polibutenos. Braskem will pay for this acquisition a total of R$700 million plus the assumption of a net debt of R$6.5 billion. While the company valued these assets on a DCF basis, we estimate
the current EV/EBITDA trailing multiple paid was close to 15x. p3 Tereza Mello, CFA

Mexican Mid-Cap Cement — Downgrades on Valuation and Milder Growth; Preview 4Q09 Downgrading Mid-Cap Cement — We downgrade the two mid-cap cement companies we cover in Mexico: Moctezuma (CMOCTEZ.MX) to Hold/Medium risk from Buy/Medium risk, and Grupo Cementos de Chihuahua (GCC.MX) to Sell/High risk from Hold/High risk. p4
Luis Vallarino, CFA

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