BBVA, exclusive financial advisor to Enagás in its latest acquisition in PeruMarch 24, 2014
BBVA Corporate & Investment Banking has acted as exclusive financial advisor to Enagás in the acquisition of a 20% stake in Transportadora de Gas del Perú S.A. (TgP) and a 30% stake in Compañía Operadora de Gas del Amazonas S.A.C. (Coga), a TgP operator company, that enforces its strategic presence in Latin America and, especially, in the Peruvian market.
BBVA advisory role has been crucial for the transaction due to the high risk of having TgP's shareholders exercising their pre-emption rights, which significantly increased the execution complexity of the transaction. The Spanish bank provided Enagás with comprehensive financial advisory services during the entire process comprising TgP and Coga valuation, due diligence coordination, acquisition structure advice, contracts negotiation and partners coordination, among others.
With this transaction, Enagás acquires a 22.38% of TgP from Hunt Oil and Repsol, in one hand, and also has reached an agreement to sell 2.38% of TgP to Canada Pension Plan Investment Board ("CPPIB") and to buy from CPPIB a 30% of Coga, which operates TgP and also Perú LNG gas pipe, in the other hand.
Enagás will become one of the major shareholder in Peru's main gas transmission company and an active operator in the country through a corporate governance framework established with respect to Coga.
With its participation, BBVA confirms its position as the Preferred M&A Franchise in Spain among Iberian corporates, where the bank leads M&A League table between 2009 and 2014 by number of deals.