Ashurst has advised South Korea’s LG International Corporation (LGI) on the acquisition of a 20% equity interest in GeoPark Colombia S.A. (GeoPark Columbia), a wholly owned subsidiary of GeoPark Holdings Limited (GeoPark).
Under the agreement, LGI will be required to pay US$20.1 million.
GeoPark is a leading independent oil and gas explorer, operator and consolidator in Latin America and is listed on the London Stock Exchange Alternative Investment Market.
Ashurst lead partner on the deal, Rupert Lewi, said: “We were delighted to once again assist LG International with its strategic partnership with GeoPark in South America, following on from advising LGI on a similar transaction with GeoPark in 2011 with respect to assets in Chile.
“More generally, we are very pleased to have been able to work with LGI for over a decade on its various energy and mining investments in Australia and around the globe.”
The transaction includes an incremental equity provision whereby GeoPark is entitled to earn back up to 12% interest in its subsidiary, depending on the success of the Colombian operations.
LGI will also pay GeoPark Colombia a pro rata amount of the acquisition costs in acquiring the Colombian assets, which were acquired by GeoPark Colombia in February and March 2012.
The Ashurst team that worked on the deal included partner Rupert Lewi, director of Korea Client Services Christine Oh, senior associate Stuart James and lawyer Richard Shi (Australia). New York law advice was provided by partner Jason Radford (New York) and senior associate Mark Fiekers (Washington DC).
