Reuters: Private Equity: UPDATE 1-Isolux Corsán's Brazil unit backs off IPO plan

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UPDATE 1-Isolux Corsán's Brazil unit backs off IPO plan Mar 15th 2012, 17:02 Thu Mar 15, 2012 1:02pm EDT * Spanish company had considered selling stock in Brazil * Isolux, Brasil Travel have dropped IPO plans this year * Investors remain skittish over IPOs SAO PAULO, March 15 (Reuters) - Spanish construction and energy conglomerate Isolux Corsán dropped plans to sell shares in an initial public offering in Brazil, in the latest sign that demand for new equity in Latin America's largest economy is faltering. According to information found on the website of Brazil's securities regulator CVM, Isolux Infrastructure, the local unit of Madrid-based Isolux Corsán, gave up on the offering. The company, which recently pledged to invest about $3 billion in Brazil through 2014, operates toll road contracts, solar power projects and transmission lines in the country. Isolux Corsán has business in another 22 countries, according to its website. Isolux Infrastructure is the third company shunning plans to sell shares in Brazil in a month. Credit Suisse Group and Santander Global Banking & Markets, the investment banking unit of Spain's Banco Santander, had been hired to handle the IPO. "Given the lack of market visibility for the offering in the short term, the company decided to wait for a better opportunity to go to markets," Isolux Infrastructure said in a statement, adding that it has not entirely ruled out the idea of an IPO. Brasil Travel Turismo asked regulators to cancel its request to become a public company on Feb. 9, after failing to drum up enough demand for the shares. The company had to slash the suggested price for the IPO twice during the pricing process. Credit Suisse was one of the Brasil Travel IPO advisers. Tourism agency CVC, controlled by buyout giant Carlyle Group LP, also refrained from selling shares earlier this month. The failure of these offerings signals that investors, who last year steered clear of those deals as Europe's debt crisis worsened, will keep shunning companies with great ambitions but an insufficient track record, poor earnings visibility or that could be vulnerable to a downturn. The transaction would have helped Isolux Infrastructure fund new and existing toll road and transmission projects in Brazil, and, on a smaller scale, Mexico and Peru. Link this Share this Digg this Email Reprints

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