Morales & Besa advises Cencosud S.A. and the Paulmann Family on a Registered public secondary offering of shares of common stock representing 6% of Cencosud

July 20, 2016

Morales & Besa successfully advised Cencosud S.A. and the Paulmann Family on a registered public secondary offering of shares of common stock representing 6% of Cencosud including in the form of American Depositary Shares (“ADSs”).

The shares were sold by Inversiones Tano Limitada, a company owned by the Paulmann Family, who continue to be the controlling shareholders of Cencosud following the offering. The total amount of the transaction was U.S.$ 458 million. In the United States the sale was in the form of ADSs and in Chile in the form of common stock, subject to market and other conditions.

J.P. Morgan Securities LLC and Credicorp Capital acted as global coordinators and book-running managers in the International Offering and J.P. Morgan Corredores de Bolsa SpA and Credicorp Capital S.A. Corredores de Bolsa as local placement agents with respect to the Local Offering.

The offering took place in a book auction on the Santiago Stock Exchange in a process known as Subasta de Libro de Órdenes.

“This was the second registered secondary offering of shares issued by a company listed in Chile and the US. The transaction had many salient features including being the first to involve the collaboration of the listed company and its management following the approval and procedures of related party transactions of Chilean securities laws, and the perfect synchronisation and execution of the working group that got the multinational transaction executed minutely according to plan; i.e., one month from kick-off to closing”, commented Guillermo Morales.

The M&B team was led by Guillermo Morales (Partner) and Francisca Pérez (Tax partner), with Josefa Rodriguez (Capital Markets Associate) and Vicente Valdes (Corporate Associate).