Hernández & Cia Advises on Sale of Majority Stake in Industrias Cachimayo to Enaex

Cachimayo, present in the Peruvian market for more than 56 years, is the sole producer of ammonium nitrate and related products in Peru, with annual production capacity of 35,000 tons. Located in the providence of Cusco, its main market is the large mining operations in its area of influence in the Peruvian south.

The transaction represented the 70% of the shares issued by Cachimayo and was executed through Holding Nitratos S.A., a subsidiary of Enaex S.A., the third largest producer of industrial grade ammonium nitrate, with presence in 40 countries via exportation.
 

As mentioned on May 16th in Peruvian newspaper Gestión, “Yura will maintain participation with 30% and will receive the international experience of Enaex to develop the roadmap, make the investments and continue the growth of Cachimayo.”

As part of the transaction, the counsel to Grupo Gloria and to Enaex jointly worked on the negotiation and drafting of the stock purchase agreement, as well as all the complementary and auxiliary documentation related to this transaction.

Grupo Gloria is one of the biggest industrial conglomerates in Peru of Peruvian investments, with a presence throughout Peru, Bolivia, Colombia, Ecuador, Argentina and Puerto Rico. Its main activities are focused on the dairy and food sectors; as well as in cement, paper, agroindustry and transport and services sectors, among others.

Hernández & Cía, acted as legal counsel to the seller, with a team led by Juan Luis Hernández, assisted by associate Sandro Cogorno and associate Harold Callo.

Rodrigo, Elías & Medrano, served as legal counsel to the buyer, led by partner Eduardo López, assisted by senior associate Efraín Salazar.

C.G.L.