In a noteworthy move by a South American company to access the US equity markets, law firm Milbank, Tweed, Hadley & McCloy LLP has represented leading Latin American retailer Cencosud S.A. in its global offering and US IPO on the New York Stock Exchange. The US IPO was part of a global offering that raised approximately $1.3 billion.
Cencosud operates a mix of department stores, home improvement and hardware stores, financial service outlets, and supermarkets/hypermarkets primarily in Chile, Argentina, Brazil, Colombia and Peru. The company previously went public in Chile and is now one of 11 Chilean companies listed on US exchanges. Cencosud’s offering was made through sale of American Depository Shares.
Milbank’s deal team was led by New York-based partner Marcelo Mottesi, who heads the firm’s Global Securities Practice. He was joined by tax partner Andrew Walker, along with of counsel Frank Vivero, associate Elizabeth Rosado and international attorney Santiago Noguerol.
Mr. Mottesi has been involved in a number of large securities offerings in recent weeks by market-leading South American companies, including representing Mexican bank Banca Mifel in a $150 million offering of 10-year notes, and the initial purchasers in offerings by Peruvian beverage company Ajecorp, pan-regional restaurant operator Arcos Dorados Holdings, Costa Rican utility and telecom company Instituto Costarricense de Electricidad, Peruvian bank Banco de Credito del Peru, and Brazilian cement company Cimentos Tupi.
“We’re pleased to have helped a number of top Latin American companies access global debt and equity markets in the past several months. Our latest transaction on behalf of Cencosud is especially rewarding given how sluggish the global IPO market has been this year,” Mr. Mottesi said. “Very few Latin American companies have listed on US stock exchanges in the recent past, but it made sense for a company of the magnitude and scope of Cencosud, which is a force across Latin America. We look forward to continuing our string of capital markets deals across the region in the second half of the year.”
