Marubeni Corporation and Toesca Asset Management’s Acquisition of Aguas Chañar S.A.

Claro & Cia and Morales & Besa advised on the deal

Marubeni Corporation, through Aguas Nuevas S.A., which is co-invested with the Innovation Network Corporation of Japan, agreed to acquire 100% of Aguas Chañar S.A. jointly with an infrastructure fund established by Toesca S.A. Administra dora General de Fondos. AN and Toesca will each hold 50% of AC respectively.

AC provides water and sewage services to a total population of 300,000 in 10 cities with in Chile’s Region 3. This region is a mixture of mining, agricultural and residential areas, while most of the land is covered by desert.

This geographical factor leads to the serious problem of water shortages, therefore, it is essential to urgently cope with the water shortages through the improvement of the water operations and the reduction of non-revenue water (*).

AN, the third largest water utility in Chile in terms of the number of customers, has three water service companies; Aguas del Altiplano operating in Region 1 and 15, Aguas Araucania operating in Region 9, and Aguas Magallanes operating in Region 12. They provide water and sewage services to a total population of 1,360,000 in 48 cities within 4 Regions. Once AC is acquired, the total number of customers serviced by the AN group of companies will reach 1,660,000, equivalent to approximately 10% of the total population in Chile.

Claro & Cia advised Marubeni Corporation and Toesca Asset Management with Jorge Martín (Picture) Joaquín Rodríguez and Josefina Covarrubias.

Morales & Besa advised Grupo Icafal, Hidrosan and Vecta Inversiones Dos with Macarena Laso, Michel Diban, María José Henríquez, Guillermo Pizarro and Sebastián Nieme.

Involved fees earner: Macarena Laso – Morales & Besa; Michel Diban G. – Morales & Besa; Guillermo Pizarro U. – Morales & Besa; Sebastián Nieme S. – Morales & Besa; María José Henríquez G. – Morales & Besa; Jorge Martín – Claro y Cia; Joaquín Rodríguez – Claro y Cia; Josefina Covarrubias – Claro y Cia;

Law Firms: Morales & Besa; Claro y Cia;

Clients: Marubeni; Toesca SA Administradora General de Fondos; Icafal; Hidrosan; Vecta Inversiones Dos;

Author: Ambrogio Visconti.