Buoyed by the highest sovereign rating in Latin America and a strong regulatory framework, Chile has long been an attractive proposition for foreign investors. The country’s energy sector has been particularly dynamic in recent years, seeing a host of big-ticket M&A transactions.
One of the biggest deals in the sector last year was Enagás’s acquisition of Endesa’s stake in GNL Quintero, which operates a three-tank regasification plant and docking facilities for methane tankers. Enagás later bought another 20% of GNL Quintero from a local affiliate of Gas Natural Fenosa. The total value of both transactions was USD 400m.
Our Santiago office, assisted by CMS offices in Spain and Oman, advised Enagás on the acquisitions and the fulfilment of various tax obligations and compliance issues.
CMS Santiago partner Jorge Allende D. said, “With its increased stake in the terminal, Enagás has reinforced its long-term commitment to Chile. For Enagás, the development and future growth of GNL Quintero is a priority, as it is part of the fundamental infrastructure for the security of energy supply in the country."
Keeping in mind that Chile already has strong economic ties with Asia, it is likely that our country will participate in the global liquefied natural gas trade with the biggest Asian countries. In addition, the import of fuel from US ports to Chile would be a competitive option.
Jorge Allende D., Partner, CMS Santiago
CMS also advised Enagás on the USD 532m restructuring of GNL Quintero’s shareholder base.
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