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Montreal's Gildan to Acquire Bankrupt Teenage Fashion Icon American Apparel for $66M

Montreal's Gildan to Acquire Bankrupt Teenage Fashion Icon American Apparel for $66M

In August 2016, American Apparel was said to have hired investment bank Houlihan Lockey to explore an exit, as reported by ExitHub at the time. However, by November American Apparel voluntarily filed for Chapter 11 bankruptcy protection once again. The bankruptcy court may require American Apparel to hold an auction for its assets and business under which the proposed acquisition would constitute the initial bid. Consummation of the acquisition would be subject to Gildan being selected as the successful bidder in any such auction and bankruptcy court approval. Gildan will be entitled to a break-up fee and certain expense reimbursements if it does not prevail as the successful bidder at any such auction. The American Apparel brand would represent a complementary addition to Gildan’s portfolio of brands. The acquisition would create revenue growth opportunities by leveraging Gildan’s extensive distribution network in North American and international printwear markets to further increase the brand’s penetration in the faster growing fashion basics segments of these markets. In addition, with American Apparel’s strong heritage as a consumer brand, Gildan said it will evaluate potential wholesale opportunities for leveraging the brand within its Branded Apparel business. Gildan is a leading manufacturer and marketer of quality branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery, and shapewear. The company sells its products under a diversified portfolio of company-owned brands, including the Gildan, Gold Toe, Anvil, Comfort Colors, Alstyle, Secret, Silks, Kushyfoot, Secret Silk, Peds, MediPeds and Therapy Plus brands. Sock products are also distributed through the company’s exclusive U.S. sock license for the Under Armour brand, and a wide array of products is also marketed through a global license for the Mossy Oak brand. The company sells its products through two primary channels of distribution, namely printwear and retail markets. Gildan distributes its products in printwear markets in the U.S., Canada, Europe, Asia-Pacific, and Latin America. In retail markets, the company sells its products to a broad spectrum of retailers primarily in the U.S. and Canada and also manufactures for select leading global athletic and lifestyle consumer brands. Gildan owns and operates vertically-integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean Basin, North America, and Bangladesh, with over 48,000 employees worldwide.]]>

@ConocoPhillips $COP Seeking to Exit Alaska LNG Facility in 'Golden Age for LNG Buyers'

@ConocoPhillips $COP Seeking to Exit Alaska LNG Facility in 'Golden Age for LNG Buyers'

“There are a large number of sources of potential LNG supply,” added B&V’s Poduval. “It is currently a golden age for LNG buyers.” As U.S. natural gas prices have risen and oil prices have stayed low, it could cost at times more to buy Gulf Coast LNG linked to U.S. natural gas prices (closer to $9 per million Btu when the cost of the feed gas is around $3) than LNG priced at a percentage of a barrel of oil (around $7 to $8 per million Btu with oil at $50 per barrel). Japanese utilities are re-examining the move to U.S. gas-linked LNG pricing and looking for a mix of pricing variables, according to Poduval. Earlier this month, ConocoPhillips outlined the company’s strategy including several actions “for accelerating the company’s value proposition of a strong balance sheet, growing dividend and disciplined growth.” These actions include an initial $3 billion share repurchase program and “the initiation of a $5 to $8 billion divestiture program, which will focus primarily on North American natural gas.” “During the past two years, we have significantly transformed ConocoPhillips to succeed in a lower, more volatile price environment. We’ve lowered the capital intensity and breakeven price of the company, lowered the cost of supply of our investment portfolio, and created strategic flexibility for future price cycles,” said Ryan Lance, chairman and chief executive officer. Earlier this year, ConocoPhillips reportedly sold its stake in the Beluga River Gas field in Alaska’s Cook Inlet to the municipality of Anchorage and Chugach Electric Association, in a $152 million deal. In July, ConocoPhillips agreed to sell its Senegal offshore assets to Australia’s Woodside Petroleum (ASX: WPL) for $350 million. In 2015, Japan, South Korea and Taiwan imported 54 percent of the world’s LNG. By 2020, Black & Veatch estimates that will fall to 40 percent as total demand in the three countries holds flat. China and India are projected to double their LNG imports between 2015 and 2020, with emerging Asian nations to triple their imports. Total demand from China, India and emerging Asian nations could reach almost 80 percent of the annual consumption in Japan, Korea and Taiwan, according to the Kenai Peninsula Borough Mayor’s Office. ConocoPhillips had operations and activities in 20 countries, $94 billion of total assets, and approximately 14,900 employees as of Sept. 30, 2016. Production averaged 1,560 MBOED for the nine months ended Sept. 30, 2016, and proved reserves were 8.2 billion BOE as of Dec. 31, 2015. ConocoPhillips was created through the merger of American oil companies Conoco Inc. and Phillips Petroleum Co. in 2002. In 2012, ConocoPhillips’ spun off its downstream assets as a new, and separate company, Phillips 66.]]>

Goldcorp $GG Said to Hire Bank of Nova Scotia to Sell Mexican Los Filos Mine

Goldcorp $GG Said to Hire Bank of Nova Scotia to Sell Mexican Los Filos Mine

Reuters reported. Goldcorp engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company primarily explores for gold, silver, lead, zinc, and copper. Its principal mining properties include the Red Lake, Porcupine, Musselwhite, and Éléonore mines in Canada; the Peñasquito and Los Filos mines in Mexico; the Marlin mine in Guatemala; the Cerro Negro and Alumbrera mines in Argentina; and the Pueblo Viejo mine in the Dominican Republic. The company was founded in 1954 and is headquartered in Vancouver, Canada. Chief executive David Garofalo told Reuters in late July that Goldcorp was looking at offloading the Mexican mine, as well as weighing options for its Alumbrera mine in Argentina and the Marlin mine in Guatemala. Considered by Goldcorp as a non-core asset, Los Filos is a “smaller scale” mine that lacks economies of scale, he added. Garofalo would not speculate on a sales value for any of the assets but said Goldcorp would be happy to be paid in part in the shares of the acquirer, as happened in 2010 when it sold its Escobal silver deposit to Tahoe Resources Inc. (NYSE: TAHO). Goldcorp acquired a 40 percent stake in Tahoe through that deal. It later sold its stake for around $1 billion. “We like supporting new generation producers like that and we’d be happy to do something like that with any of these assets,” Garofalo told Reuters. The Los Filos operation consists of two open-pit mines – Los Filos and El Bermejal – and one underground mine. The open-pit operation began commercial production in January 2008. Los Filos has proven and probable gold reserves of 1.46 million ounces and 10.55 million ounces of silver, the company reported. Gold production at Los Filos in 2015 totaled 272,900 ounces. During 2015, Los Filos commenced a study to perform a detailed assessment of its operating options, including the update of the block model with additional drill data. The study was completed in the fourth quarter of 2015 and the findings were incorporated into an updated Los Filos life of mine plan. “As a result of these findings and the change in long-term metal price assumptions, recoverable ounces and the associated future after-tax cash flows decreased which resulted in a reduction of the estimated recoverable value of Los Filos and a shortened mine life,” Goldcorp said. Its net asset value was estimated at $617 million in an August RBC Capital Markets report. The mine is now operating under a revised, shorter mine life plan that targets higher grades of gold. Canadian gold miner Torex Gold Resources Inc is seen as a logical buyer because it has a mine about 41 kilometers (25 miles) from Los Filos, the sources said. Several other Canadian and global players with mines in Mexico could also take a look, the sources added. With Torex ramping up its own Guerrero mine, it’s unclear how keen the company is to double down in the region, which has had social and crime issues and the occasional shutdown. “As neighbors with potential synergies, it is almost incumbent upon us to look. We will do so to find out if we should be interested,” Torex CEO Fred Stanford said. Other Canadian gold miners with a presence in Mexico include Yamana Gold, Agnico Eagle Mines, New Gold , Argonaut Gold Inc, Alamos Gold Inc, Timmins Gold Corp, McEwen Mining and Primero Mining Corp. Los Filos gold production is estimated at 328,000 ounces this year and 404,000 ounces in 2017. It is expected to slip to 166,000 ounces in 2020, its final year of operation, RBC analysts have forecast, according to Reuters.]]>

Brookfield $BAM Buying $5.2B Petrobras Pipeline, @Shell Exiting Argentine Gas Stations

Brookfield $BAM Buying $5.2B Petrobras Pipeline, @Shell Exiting Argentine Gas Stations

Petrobras (NYSE: PBR) (BM&F Bovespa: PETR3, PETR4) agreed to sell its 1,560 miles natural gas pipeline Nova Transportadora do Sudeste for $5.2 billion, to a consortium led by Canada’s private equity giant Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM.A), with the participation of British Columbia’s pension fund, China’s CIC, Singapore’s sovereign wealth fund GIC, and private equity firm First Reserve. The deal is subject to approval by the board of directors of Petrobras and Brazilian government authorities. So far this year, Petrobras had sold $3.9 billion in assets, of a total $15.1 billion target for divestments expected by the end of this year. Downsizing efforts have accelerated since May, when Pedro Parente was appointed as CEO of Petrobras, which is burdened with over $120 million in debt, the largest of any global oil firm. Brookfield, Canada’s largest private equity and alternative asset manager, has roughly $225 billion in assets under management. The firm invests in the property, power, and infrastructure sectors. Brookfield is based in Toronto, Canada with additional offices across North America, South America, Europe, Asia, and Australia. Brookfield, formerly known as Brascan Corp, was founded in 1899 as a builder and operator of electricity and transport infrastructure in Brazil, reflected in its earlier name which combined “Brasil” and Canada. The move would follow Brookfield’s agreement last month, to buy Brazilian engineering conglomerate Grupo Odebrecht’s 70 percent stake in water and sewage group Odebrecht Ambiental for $1.65 billion. Odebrecht Group, Brazil’s fourth largest private group, is a global conglomerate consisting of diversified businesses in the fields of engineering, construction, chemicals and petrochemicals. In June 2015, Brazilian authorities arrested the group’s chief executive Marcelo Odebrecht, in connection with an ongoing probe into bribes paid by Petrobras, which has seen Brazil’s former President Dilma Rouseff recently impeached, and her predecessor Luiz Inácio Lula da Silva, embroiled in the scandal. In March 2016, Marcelo Odebrecht was slapped with a 19-year prison sentence, for paying over $30 million in bribes to executives of Petrobras, in exchange for contracts and influence. In January, Brookfield acquired a 57.6 percent stake in power generator Isagen SA (Bolsa Colomb: ISAGEN) from the Government of Colombia for $1.99-billion, the largest privatization deal in the country in nearly a decade. WELL-OILED INTER-AMERICAN CROSS-BORDER ENERGY DEALS In July, Petrobras agreed to sell a 66% stake in its offshore exploration block BM-S-8 license in the Santos basin, to Norway’s Statoil ASA, for $2.5 billion. The divestiture included a substantial part of the Carcara oil discovery, said to be one of the largest in the world in recent years. Meanwhile, last week Anglo-Dutch global oil and gas operator Royal Dutch Shell plc (NYSE/LSE: RDS-A) chief executive Ben van Beurden indicated at a conference in New York that the company is in the middle of a strategic review of its downstream assets in Argentina, as part of a global $30 billion divestment program. Shell Argentina subsequently clarified in a statement that “in response to the global circumstances of our industry and the objectives behind our combination with BG, we are conducting a strategic review only of our downstream business and assets in the country,” which include its Dock Sud refinery in Buenos Aires, retail gas stations, chemicals, propane gas, aviation and maritime fuels, and lubricants. Shell’s 676 gas stations in Argentina, bring its market share to 19 percent, the second largest after state-owned YPF SA, which has 1430 stations with a 40 percent market share. argentina_gas_stations_mkt-share_sept-2016 “Upstream assets aren’t included in the review as shale investments are a priority for the company. Shell does not want to lose its presence in Argentina, and has a strong commitment to the country,” added Joel Glotzer, a Shell spokesperson in Argentina. Juan Jose Aranguren, Shell’s previous CEO in Argentina for 12 years and an energy industry veteran with nearly four decades of experience, was one of the foremost business critics of former President Christina Kirchner. He was a key adviser of current President Mauricio Macri, and became Argentina’s new Energy Minister, now in the public eye due to electricity and gas rate hikes which the new administration is struggling to implement in the face of strong resistance. The appointment of Teófilo Lacroze as CEO of Shell in Argentina, replacing Aranguren in March, brought about a new era as the company is changing its global business strategy, in the midst of a new local ecosystem and more conducive dialogue and relationships with government authorities. “I see myself more in a scenario where the external relationship with the authorities involves greater dialogue and building the future, with more internal focus on developing the sector, both downstream (products leaving the refinery and reaching the final consumer) in which we want to grow above average, as well as upstream (required for crude exploration and extraction), to move from a pilot stage to production,” Lacroze said earlier this year. Two weeks ago, Marcelo Mindlin, controlling shareholder and president of Pampa Energia (NYSE: PAM), the largest integrated electricity company in Argentina, which bought 67.19 percent of Petrobras Argentina (PESA) in May for $892 million, became PESA’s president. Pampa’s acquisition of PESA included 269 gas stations, a refinery in Bahia Blanca, shares in Transportadora Gas del Sur (TGS), thermal and hydroelectric power plant Genelba Picún Pichi Leufu, several petrochemical plants in Bahia Blanca and Santa Fe, and a series of oil basins. Pampa also controls Transener, the largest network of high voltage transmission in Argentina, and Edenor, the largest electricity distributor in Argentina. Mindlin is a former founding partner of IRSA, and vice chairman of Cresud, APSA (formerly Alto Palermo SA), Dolphin Fund Management and Hoteles Argentinos. In 2012, through their Axion Energy unit, the Argentine Bulgheroni Group‘s Bridas Corp., a joint venture with China’s state owned enterprise CNOOC (China National Offshore Oil Corporation), acquired over 600 Esso service stations from Exxon Mobil, for $800 million. In 2011, Oil Combustibles, controlled by Cristóbal López, acquired a Petrobras refinery in Santa Fe, Argentina, togehgter with 365 gas stations for $110 million. Oil Combustibles is currently in the midst of insolvency procedures (“concurso de acreedores”). “Lower oil prices continue to be a significant challenge across the business, particularly in the Upstream. We are managing the company through the down-cycle by reducing costs, by delivering on lower and more predictable investment levels, executing our asset sales plans and starting up profitable new projects,” Shell’s van Beurden said in late July, after reporting that Shell Q2 earnings plunged 72 percent. At the end of August, after an oil spill in the Gulf of Mexico 97 miles south of Louisiana under investigsation by the U.S. Bureau of Safety and Environmental Enforcement, Shell agreed to sell four Green Canyon offshore blocks, referred to as the Brutus/Glider assets, to EnVen Energy Ventures LLC, for $425 million in cash. Two weeks ago, Compañía de Petróleos de Chile COPEC SA (SNSE: COPEC), one of the largest companies in Chile, agreed to acquire MAPCO Express Inc., with 348 convenience stores, from Delek US Holdings Inc. (NYSE: DK) for $535 million in cash. Delek US is a diversified downstream energy company with assets in petroleum refining, logistics and convenience store retailing. A week earlier, Canadian Alimentation Couche-Tard Inc. (TSX: ATD.A ATD.B), one of the world’s largest company-owned convenience store operators, agreed to acquire San Antonio, Texas-based CST Brands Inc. (NYSE: CST) for $4.4 billion. CST operates over 2,000 locations throughout the Southwestern United States with an important presence in Texas, Georgia, the U.S. Southeast Region, New York and Eastern Canada. CST also controls the general partner of CrossAmerica Partners (NYSE: CAPL), a gas distributor to more than 1,100 locations in the United States. In July, Dallas, Texas-based Alon USA Energy Inc. (NYSE: ALJ), an independent refiner and marketer of petroleum products, retained JPMorgan to explore strategic alternatives including a sale of the company or some of its assets. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 gas stations and convenience stores in Texas and New Mexico. Alon’s largest shareholder is Delek US Holdings Inc., with a stake of roughly 48% which it acquired from Israel’s Alon Group for $572 million in April 2015. In June, Canada’s largest retailer, Loblaw Cos. Ltd (TSX: L), said it is seeking to sell its “gas bar” operations for CAD $400 million (USD $308 million). Loblaw’s gas station network is one of the largest in Canada, consisting of 212 retail fuel sites with adjacent grocery stores. Photo: Argentine President Mauricio Macri with Marcelo Mindlin, President of Pampa Energy, at World Economic Forum in Davos, in January 2016.]]>