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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.]]>

Puerto de Liverpool to Buy @Walmart Mexican Suburbia Chain for $1B

Puerto de Liverpool to Buy @Walmart Mexican Suburbia Chain for $1B

Wal-Mart Stores Inc. (NYSE: WMT) agreed to acquire Jet.com Inc. for $3.3 billion, to position Walmart for faster e-commerce growth and to better compete against Amazon. Citigroup Global Markets acted as financial adviser to Liverpool, and Galicia Abogados acted as legal adviser. The deal is subject to regulatory approval, and other customary closing conditions, and is expected to close during the first quarter of 2017. The move comes a month after Liverpool agreed to acquire at least 25.5% and up to 100% of Ripley Corp. SA (BCS: RIPLEY), a Chilean department store, financial services, and shopping malls management company. As part of the deal, Ripley’s current controlling shareholder is the Calderon Volochinsky family, which owns 53% of the company. Fitch Ratings has affirmed Liverpool’s Long-Term Local and Foreign Currency Issuer Default Ratings at ‘BBB+’ and has revised the Rating Outlook to Stable from Positive following the company’s announcement to acquire 100% of Suburbia. Fitch has also affirmed Liverpool’s long-term National scale rating at ‘AAA(mex)’. In Fitch’s opinion, “the addition of Suburbia to Liverpool’s portfolio should strengthen its business position in the medium- to low-income segment, create opportunities to capture synergies, and open the possibility to expand its financial business to Suburbia.” Fitch believes the Ripley and Suburbia deals “will not have an impact on Liverpool’s ‘BBB+’ rating given its solid balance sheet and current low leverage.” Fitch Ratings says it believes that Liverpool “is well positioned to continue its business strategy given the demographic and socioeconomic fundamentals in Mexico, with a growing middle class, low inflation rates, higher real wages and higher remittances due to the peso depreciation.” “Liverpool’s growth will be underpinned by its store expansion plan in conjunction with an increased loan portfolio,” added Fitch. The company expects to continue funding its growth strategy through cash on hand and operating cash flow. In Fitch’s view, Liverpool’s recent acquisitions – if materialized – “will strengthen the company’s business position by expanding its target market and geographic footprint, positioning it as a relevant player within the Latin American region in terms of scale and purchasing power.” Liverpool is the leader in the middle, middle-high and high-income segment of department stores in Mexico, operating 17 shopping malls including Perisur and Galerías Monterrey. The company operates 113 stores across 57 cities throughout Mexico, 80 under the name of Liverpool, 29 stores called Fabricas de Francia, and four Liverpool Duty Free stores. About 80 percent of total units are owned by Liverpool. The company also has 25 shopping malls operating in 16 cities and owns a non-controlling 50% stake in Regal Forest Holding Co., which has 14 different store brands selling consumer durable products in 20 countries around Central and South America and the Caribbean. Liverpool, first called The Cloth Case, was founded in 1847 by Jean Baptiste Ebrard, a Frenchman who first started selling clothes in cases in Mexico City’s downtown. In 1872, he started importing merchandise from Europe with much of the merchandise coming from the Port of Liverpool, England, prompting Ebrard to adopt the name Liverpool for his store. In 1862 he opened its second store and since then it has not stopped growing.]]>

@BainCapital Said to Seek Exit for Apple Leisure Group at $1.5B Valuation

@BainCapital Said to Seek Exit for Apple Leisure Group at $1.5B Valuation

Reuters reported. The move comes two days after private equity firm Apollo Global Management LLC (NYSE: APO) agreed to acquire for $2.2 billion and take private ALG’s rival, Diamond Resorts International Inc. (NYSE: DRII), a timeshare company headquartered in Las Vegas, Nevada, with a network of more than 420 vacation destinations. ALG, based in Newton Square, Pennsylvania, is America’s top seller of all-inclusive vacation packages, and #1 in leisure travel to Mexico, the Dominican Republic and Jamaica worldwide, the company says. ALG is the parent company of resort and brand management company AMResorts and its loyalty program, Unlimited Vacation Club. ALG also oversees tour operators Apple Vacations and Travel Impressions, online travel agency CheapCaribbean.com, as well as destination management companies (DMC) AMStar and Worldstar. In 2001, current ALG CEO Alejandro Zozaya, founded resort sales, marketing, and brand management company, AMResorts. A decade later, he led the effort to form Apple Leisure Group by making tour operator, Apple Vacations, a sister company of AMResorts. “More and more travelers are seeking a boutique resort experience where they can enjoy the comfort of the all-inclusive model in spectacular, yet, secluded settings,” said Zozaya. Bain Capital acquired a majority stake in ALG in late 2012, which then acquired online leisure wholesaler CheapCaribbean and B2B tour operator Travel Impressions from American Express, in 2013. Just a few days ago, ALG’s subsidiary AMResorts announced its latest resort brand management deal for 2016 with the signing of Zoëtry Chamela Costalegre Mexico. Located just 90 miles south of Puerto Vallarta, the 120-room new-build will be the first resort under AMResorts’ brand management in the high-end vacation destination of Chamela Bay, Mexico. “Mexico remains a key component of Apple Leisure Group’s growth strategy. As a result, our distribution to new destinations in the country continues to thrive,” said Javier Coll, executive vice president and chief strategy officer of ALG. “The variety of unique experiences provided through our vertically integrated family of travel companies allows hotel owners and developers to connect with a vast array of leisure travelers while maintaining the high level of quality and service synonymous with AMResorts’ six sophisticated resort brands.” Bain Capital is one of the world’s foremost private investment firms, with approximately $75 billion under management across several asset classes including private equity, venture capital, public equity and credit products. Founded in 1984, the firm’s more than 400 professionals are collectively the single largest investor in all of its funds. The firm has offices in Boston, New York, Chicago, San Francisco, Palo Alto, London, Munich, Dublin, Tokyo, Shanghai, Hong Kong, Mumbai and Melbourne.]]>