Milbank Represents Grupo Famsa S.A. de C.V. in $230 Million Initial International Stock Offering
Mexican Furniture and Household Goods Retailer
NEW YORK, NY, May 24, 2006 – Capitalizing on the growing domestic economy and the expansion of its stores in the U.S., Mexican furniture and household goods retailer Grupo Famsa S.A. de C.V. (“Famsa”) sold $230 million in an initial stock offering on the Mexican Stock Exchange (BMV) and internationally through Rule 144A/Regulation S. The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by partner Michael Fitzgerald, represented Famsa in structuring and closing the offering.
Mr. Fitzgerald commented, “The success of the Famsa IPO, which was more than eleven times oversubscribed, indicates investors’ confidence in the long term growth prospects for Mexico’s economy and consumer market. While there has been recent turbulence in emerging markets, Famsa proves the resilience of the market for companies with solid fundamentals and attractive growth prospects.”
In addition to Michael Fitzgerald, the Milbank team representing Famsa included tax partner Andrew Walker, associates Frank Vivero, Pedro Reyes, Hairong Yu and international attorney Maria Hyde.
Monterrey-based Famsa [BMV: GFAMSAA], one of the largest furniture, electronics and appliance retailers in Mexico, has over 350 stores in Mexico and over 30 stores in the southwestern U.S. The company and selling shareholders Monterrey Venture Holding, LLC, a company affiliated with the General Electric Pension Fund, and Tapazeca, S.L., a company affiliated with Soros Fund Management, sold 98.6 million shares (approximately 30% of the company’s stock) at $2.36 (26 pesos) per share, for $230 million. The proceeds of the IPO will be used to pay down debt and fund expansion. Credit Suisse, BBVA Securities, Inc. and UBS Investment Bank acted as underwriters.
Milbank, Tweed, Hadley & McCloy LLP is a preeminent global law firm that is recognized for more than 140 years for providing innovative legal solutions in many of the world’s largest, most complex, “first-ever” corporate transactions, including capital markets, corporate finance, project finance, acquisition finance, and other major fields of law practice. Milbank clients range from prominent multinational financial, industrial and commercial enterprises to governments, institutions and individuals. The Firm is headquartered in New York, with offices in Los Angeles, Washington, DC, London, Frankfurt, Munich, Tokyo, Hong Kong and Singapore.