Chilean timber company Masisa has sold all of the forestry assets owned by its subsidiary Masisa Forestal to Forestal Tregualemu, a company wholly owned by GFP Chile Timberland Holdings. The $350m deal closed June 26th.
The transaction also included a long-term supply contract between Forestal Tregualemu and Masisa for the supply of timber products for the latter's industrial operations, and was the largest transaction in Chile since October 2019.
"The transaction was carried out in an extremely challenging context due to the Covid-19 pandemic. The process started under the form of an international bid, in which several companies and funds submitted very competitive bids," the law firm said.
"The negotiations among the parties took several months and comprised not only contracts typically included in M&A transactions but also others which are highly technical from the forestry industry standpoint. This implied the need for collaborative work among the executives of the company, the lawyers, financial advisors and forestry experts," it added.
Carey acted as counsel to Masisa and the team was made up of partners Francisco Ugarte, Jorge Ugarte, Lorena Pavic and Jessica Power, of counsel Francisco Corona and associates Alejandra Daroch, Pamela Morales, Maximiliano Urrutia, Manuel José Barros, Izaskun Linazasoro, Patricia Rivas, José Pardo, Pablo Torrealba, and Alicia Corbo.
Representation included advising on the private bidding, negotiation of the respective asset purchase agreement and completion of the conditions for closing the deal, including the mandatory approval from Masisa’s shareholders.
Foley Hoag acted as counsel to GFP and PSP with a team led by partners Jim Smith and Gwendolyn Wilber.
Eyzaguirre y Cía team led by partners Cristián Eyzaguirre and Gonzalo Eyzaguirre, assisted by Antonio Marinovic served as local counsel to GFP.
Philippi Prietocarrizosa Ferrero DU & Uría, through its partner Tomás Acosta and associate Josefina Joannon, acted as local counsel to PSP.
UBS served as financial advisors to Masisa.