Buenos Aires grain & meat giant El Tejar is backed by Capital Group Companies & Altima Partners

Buenos Aires grain & meat giant El Tejar is backed by Capital Group Companies & Altima Partners

More Buenos Aires IPO news this week on the heels of yesterday’s post regarding TGLT’s public offering ambitions. Bloomberg BusinessWeek is reporting that BA-based El Tejar is weighing an IPO in New York and taking the necessary steps to be in compliance whenever the mood strikes over the next three years. El Tejar CEO Oscar Alvarado told BBW, “We are preparing ourselves so that Brazil is not our only option, and the option exists of doing it in New York. We are preparing the company so as to be able to make the decision to go public whenever we decide.” With operations in Argentina, Bolivia, Brazil, Paraguay and Uruguay, El Tejar designs and manages grain and meat production systems with an emphasis on risk management and environmental sustainability. (Org Chart) El Tejar’s annual production of grains and oilseeds  is roughly 3 million tons according to Bloomberg, and the company should benefit from record corn and soybean crops this year in both Argentina and Brazil.  While the company describes its focus and community involvement activities as “multilocal,” the company’s appeal to investors is definitely multinational. The two investment funds with the largest stakes in El Tejar are The Capital Group Companies and London-based Altima Partners LLP. (Bloomberg BusinessWeek article)

Cows outnumber people over 3:1 in Uruguay and grass-fed beef is the norm. (Photo: Eduardo Amorim)

Cows outnumber people over 3:1 in Uruguay and grass-fed beef is the norm. (Photo: Eduardo Amorim)

An American Express print campaign several years back encouraged cardholders to travel abroad with this culinary tagline, “Only 4 restaurants in the world can prepare the perfect steak…3 of them are in Argentina.” Perhaps the only thing bigger than the country’s reputation for fine beef is the sheer girth of the cattle that roam the fertile Pampas. But a funny thing happened on the road to recovery from the ‘02 financial crisis, Alexei Barrionuevo tells New York Times readers: “Argentina, in some ways, is a victim of its own success. Exports rose after a steep devaluation of the Argentine peso in 2002 made the country’s beef more competitive globally. But supplies began to dry up for Argentine consumers — who eat more beef per person than any others in the world, industry officials say — causing prices to rise and stoking social discontent.” Further meddling by former President Kirchner and recent drought conditions have forced many farmers to focus more efforts on soybean cultivation. Advantage Uruguay. The neighboring country of 3.8 million is growing beef exports and gaining visibility on the world stage, thanks in part to an aggressive marketing campaign by INAC, the National Beef Institute. InvestBA remains highly bullish on this beautiful country which offers foreign investors unique investment opportunities, tax advantages, natural beauty in both the interior and along the Tango Coast, and—together with Argentina—the highest quality of life of any countries in Latin America. (Full NYTimes article)

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BA Mayor Shares His Vision in Miami

BA Mayor Mauricio Macri speaks at the Miami Herald's Americas Conference 2009

BA Mayor Mauricio Macri speaks at the Miami Herald's Americas Conference 2009

Buenos Aires Mayor Mauricio Macri spoke yesterday at the Miami Herald’s Americas Conference 2009 and shared his vision for Argentina’s future. Macri, who appeared in a panel discussion with journalist Andres Oppenheimer and Buenos Aires Province Governor Daniel Scioli, was critical of mistakes made over the past 20 years. According to Poder Magazine, “Macri told those present that his work will be concentrated on ‘trying to reverse two decades of neglect and lack of investment.’” Macri pointed to Brazil and Chile as regional models and cited the need for increased food & mineral production, greater tourism promotion and stronger, more transparent institutions if Argentina is going to be competitive going forward in the global marketplace.

This is a fascinating video that sheds light on a truly global deal, Argentina’s role in the supply chain, and China’s insatiable appetite for everything. Noble Group CEO Richard Elman sits down with Bloomberg’s Bernie Lo to talk about China Investment Corporation’s (CIC) $850 million purchase of a 15% stake in Noble. Bloomberg notes that China has an appetite for everything Noble does business in from agriculture to foodstuffs to ores. Elman says the newly formed partnership seeks to secure the food chain on a global basis. “We think it’s going to be more important as the years go by. The world population is increasing by 3-5% every year, but the agricultural commodity development is not catching up with it, so I think we have a lot of opportunity there.” Noble’s port network in Argentina (Asset Map) is an integral piece in the pipeline strategy for South America, a region that Elman considers “the best source of low cost production in the world.”

cti alsCalifornia-based CTI Technology (CVAT.OB) today announced a long-term agreement with Biocombustibles y Energias Alternativas (ALSBIO) to develop projects in Argentina and other parts of Latin America. According to the announcement, ALS had already partnered with DOW Chemical and identified several projects where CTI technology could dramatically improve yields and profitability. CTI CEO Roman Gordon said, “We are very pleased to be working with ALS and DOW on these projects and expect that there is a bright future for the combination of our technologies in Argentina as well as the rest of the world where older outdated technologies have been installed.” Argentina is one of the world’s largest exporters of biofuels, and CTI was recently chosen one of the “50 Hottest Companies in Bioenergy by the leading industry publication, Biofuels Digest.

For more information about investing in Biofuels in Argentina, click here for a Sector Summary or e-mail me at info@investba.com.

 
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