SalfaCorp greenlights US$252mn capital increase

Chile's largest construction group, SalfaCorp, has greenlighted a 120bn-peso (US$252mn) capital increase, bringing its shareholders' equity to more than 234bn pesos. The capital increase involves issuing 75mn shares, representing 15.8% of the firm's total shares in circulation. The board will determine the price of the capital increase within 120 days, according to a company release. The move is part of the company's three-year strategy to grow sales from US$1.5bn to US$2.4bn by 2013. The deal will also allow SalfaCorp to continue its aggressive growth plan in Chile, Peru and Colombia, where it is expanding both organically through international partnerships, as well as through M&A. Chile's construction chamber predicts investment in the housing and infrastructure sector to grow by 652 UF (Chile's inflation-linked unit; almost 12.3tn pesos) this year, while projects in the mining, energy and other sectors will grow by 100bn pesos in the next four years. SalfaCorp subsidiary Salfa Ingeniería y Construcción recently signed an agreement to acquire compatriot firm Tecsa, worth some US$50mn-75mn. The deal is expected to close by April.