Arroyo Energy’s $422.5 Million Acquisition of Gasmar

Cuatrecasas advised Gasco and Copec on the deal, while White & Case LLP and Garrigues advised Arroyo Energy Investment Partners. Simpson Thacher & Bartlett advised Gasco S.A. and Abastible S.A. In Chile, Portaluppi, Guzmán y Bezanilla advised Abastible S.A. and Empresas Copec S.A. Albagli Zaliasnik advised Gasmar S.A.

Empresas Gasco and Copec—through the latter’s subsidiary Abastible—sold all their stake in their subsidiary Gasmar to Arco 4 SpA, an investment vehicle of US fund Arroyo Energy Investment Partners.

The transaction was valued at $422.5 million and its closure, subject to conditions precedent, is planned for this year.

This disinvestment, ordered by the Supreme Court of Chile on the grounds of being the main competitors in the Chilean liquefied gas distribution business, took place within the time limit set by the highest court. Thanks to this transaction, which took place through a bidding process led by Banco Santander, Gasco reported gains of $177 million and Abastible $97 million.

Gasmar S.A. was founded in 1992. The Company’s line of business includes the retail sale of bottled or bulk liquefied petroleum gas.

Empresas Gasco S.A. offers utility services. The Company provides natural gas distribution and transmission for mining, agriculture, residential buildings, hospitals, foods, fisheries, and other industrial sectors. Gasco serves customers in Chile.

Founded in 1934, Copec is Chilean a holding company that operates in two major sectors of activity: natural resources and energy.

The Cuatrecasas team was led by its partners Roberto Guerrero (Picture) and Tomás Kubick, with the support of its associates Magdalena Urquidi and Pilar Illanes.

White & Case LLP team advising Arroyo Energy Investment Partner was led by partners Bill Parish in Houston and Carlos Viana in Miami and includes counsel Fern Hahn, partner Chad McCormick, counsel Michael Rodgers, and associates Carlos Diaz and Luisa Muskus (all in Houston) and Maria Vanegas, Ana Maria Arias (both in Miami) and Raffaele Montenero Turco (New York).

In Chile, Garrigues advised Arroyo Energy with Cristóbal Fainé, Oscar Ferrari Gacía, Mario Ybar Abad, Constanza Velásquez Cabrera and Thomas Dawes Vicuña.

Simpson Thacher & Bartlett advised Empresas Gasco S.A. and Abastible S.A. with Juan M. Naveira, Benjamin Rippeon, Steven DeLott, Jon Vicuña and Jasmine Hay.

In Chile, Portaluppi, Guzmán y Bezanilla advised Abastible S.A. and Empresas Copec S.A. with Juan Francisco Guzmán Rencoret.

Albagli Zaliasnik advised Gasmar S.A. with Cristian Araya M., Antonio Rubilar Suárez, David Ancelovici Suhrcke and Eduardo Anguita.

Involved fees earner: David Ancelovici – Albagli Zaliasnik; Eduardo Anguita – Albagli Zaliasnik; Cristián Araya – Albagli Zaliasnik; Antonio Rubilar – Albagli Zaliasnik; Roberto Guerrero – Cuatrecasas; María del Pilar Illanes Donoso – Cuatrecasas; Tomás Kubick – Cuatrecasas; Magdalena Urquidi – Cuatrecasas; Thomas Dawes – Garrigues; Cristóbal Fainé Henríquez – Garrigues; Oscar Ferrari García – Garrigues; Constanza Velásquez Cabrera – Garrigues; Mario Ybar Abad – Garrigues; Juan Francisco Guzmán Rencoret – Portaluppi Guzmán y Bezanilla; Steven DeLott – Simpson Thacher & Bartlett; Jasmine Hay – Simpson Thacher & Bartlett; Juan Naveira – Simpson Thacher & Bartlett; Benjamin Rippeon – Simpson Thacher & Bartlett; Ana Maria Arias – White & Case; Carlos Ramón Díaz Sordo – White & Case; Fern Han – White & Case; Chad McCormick – White & Case; Raffaele Montenero Turco – White & Case; Luisa Muskus – White & Case; William Parish – White & Case; Michael Rodgers – White & Case; Maria Vanegas Llobet – White & Case; Carlos Viana – White & Case;

Law Firms: Albagli Zaliasnik; Cuatrecasas; Garrigues; Portaluppi Guzmán y Bezanilla; Simpson Thacher & Bartlett; White & Case;

Clients: Abastecedora de Combustibles SA; Arroyo Energy Investment Partners LLC; Empresas Copec S.A.; Empresas Gasco S.A.; Gasmar S.A.;