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Peru's Aenza to spin off construction, focus on infrastructure ops - IG4 CEO

Tatiana Bautzer
·2 min read

By Tatiana Bautzer

SAO PAULO, Sept 24 (Reuters) - Peruvian conglomerate Aenza SAA is preparing a corporate restructuring that will include the spin off of its construction unit, a new bond issue and a potential share offering to finance its growth, according to its new controlling shareholder.

Brazilian private equity fund IG4 is planning a corporate reorganization after the conclusion of the acquisition to transform Aenza into an infrastructure operator in Latin America, IG4 CEO and managing partner Paulo Mattos said in an interview with Reuters.

Aenza has hired Banco Santander's investment banking unit to manage a $400 million debt issue that is expected to include a dollar-denominated bond and some local debt in Peru, Mattos added.

The group has also mandated Lazard and Santander to begin the process of spinning off its construction, real estate and oil and gas units. After the spin off is complete, Aenza will consider whether to sell the unit, Mattos said.

"We want Aenza to focus on infrastructure operation and become a multinational company in different Latin American countries," Mattos said. Aenza is expected to look for opportunities to operate private airports and highways, for example, throughout Latin America.

The executive said that Aenza may consider a share offering after the spin off, depending on the financing needed to grow.

The company is expected to open offices in other Latin American countries beyond Peru and one in Miami to consider opportunities in the region.

IG4 concluded the change in Aenza management earlier this week, electing a new board. Former Telefonica executive and IG4 partner Juan Revilla is the new chairman. Other board members appointed by the private equity firm are Gustavo Buffara, Pablo Kühlenthal and Gema Garrido.

Aenza's new CEO is Andre Mastrobuono, former head of turnaround for IG4, with previous experience in buyout firms Carlyle and GP Investmentos. (Reporting by Tatiana Bautzer; editing by David Evans)