There were just five equity capital markets deals submitted to Latin Lawyer over the two-month period. Seven international law firms and eight local outfits helped companies raise US$1.6 billion. This is down from the two last months of 2018, when Latin Lawyer recorded 17 equity offerings, worth US$2.2 billion. Those offerings drew counsel from 15 local firms and only two international players.
Two of the five deals took place in Brazil during January and February. Pinheiro Neto Advogados landed a place on both (it was the only firm alongside BMA - Barbosa, Müssnich, Aragão to report a role in more than one equity transaction). In the largest deal during the two-month period, Pinheiro Neto helped Brazilian conglomerate Cosan launch a US$528 million tender offer to increase its stake in Companhia de Gás de São Paulo. BMA advised Banco PTG Pactual as an intermediary institution.
In Brazil’s other equity deal, Pinheiro Neto and international firm Davis Polk & Wardwell LLP helped Brazil’s largest car rental company Localiza make a follow-on offering worth US$494 million. The placement agents turned to local firm Cescon, Barrieu, Flesch & Barreto Advogados and international outfit Shearman & Sterling LLP.
Another big-ticket offering was the US$428 million IPO of China’s Fosun Tourism Group. International law firm Paul Hastings LLP; BMA in São Paulo; González Calvillo, SC in Mexico City and Guzmán Ariza Abogados y Consultores in Santo Domingo helped the company, which owns French holiday business Club Med, while the sponsors enlisted Kirkland & Ellis LLP. The IPO priced at the bottom of the range (US$2 per share) and was made on the Hong Kong Stock Exchange.
In Colombia, Canada’s McMillan LLP and local firm DLA Piper Martínez Beltrán helped PharmaCielo raise US$60 million. Fasken in Canada and Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) advised the placement agents. PharmaCielo is a world-leading producer of medical cannabis and cannabis oil.
Peru was the only other country to register an equity markets deal. Local construction company Graña y Montero turned to Rodrigo, Elías & Medrano Abogados in Lima and Simpson Thacher & Bartlett LLP in the US to issue shares for US$130 million.
Latin Lawyer recently published research into Latin American debt capital markets which showed Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados had the highest combined deal value and volume of any Latin American law firm in January and February. In Spanish-speaking Latin America, Argentina reported the most deals with EGFA; Marval, O'Farrell & Mairal; Tanoira Cassagne Abogados; and Tavarone, Rovelli, Salim & Miani leading the pack.
Our report is based on deals of any value submitted to Latin Lawyer that were signed, announced or closed in January or February 2019. Firms linked to reported deals were invited to submit other transactions that occurred during these months. We have included all counsel to the best of our knowledge. If you think your firm’s deal has been missed, you can submit it here for consideration.