Machado, Meyer, Sendacz e Opice Advogados, Lefosse Advogados, Skadden, Arps, Slate, Meagher & Flom LLP, Shearman & Sterling LLP and Conyers Dill & Pearman have helped BTG Pactual raise 3.656 billion reais (US$1.96 billion) in the first ever initial public offering by a Brazilian investment bank.
The high valuation of BTG Pactual represents a vote of confidence for Brazil′s capital markets (Credit: David Siqueira)
BTG
Pactual, Latin America’s largest independent investment bank, hired Machado
Meyer, Skadden and Conyers Dill for the IPO it originally filed for on 1
March. Lefosse Advogados and Shearman &
Sterling advised the underwriters: BTG Pactual, Bradesco BBI, Goldman Sachs and
JP Morgan.
BTG will sell a total of 117 million units at 31.25 Brazilian reais each, the
bank said in a filling to Brazil’s securities regulator, the CVM, late on
Tuesday, falling within the suggested price range of 28.75 reais and 33.75
reais. The deal is said to value BTG Pactual at about US$14.4 billion,
according to a source quoted by Reuters, making it Brazil′s 16th-biggest listed
company by market capitalisation.
The outcome of the IPO has been eagerly awaited as a result of speculation
that, thanks to Brazil’s rapid economic growth, BTG may one day rival the
global heavyweights of investment banking, such as Goldman Sachs. By continuing
to follow the template already set by the US$2.5 billion worth of acquisitions
in real estate, finance and services that BTG has made since its inception,
managing partner and founder André Esteves has said that he hopes to make it
the largest investment bank in emerging markets by 2020. The high value
represents a vote of confidence for the bank and its founder, despite the
allegations of insider trading in Italy which dogged Esteves in the run up to
the IPO.
The IPO has been widely perceived as the litmus test of investor appetite in
Brazil’s capital markets too. Brazil′s IPO market has fallen out of favour of
late among investors concerned by overpriced deals, after a boom in the
mid-2000s. Last week, car rental company Locamerica broke a 12 month IPO
drought, the longest in Brazil’s industry, and priced below the target range.
Prior to that three other attempted IPOs flopped because of market turmoil.
Earlier this year in February, BTG Pactual merged with Chilean
rival investment bank Celfin in a US$600 million deal that typifies the bank’s
fast growth and propensity for deal-making, also with the help of Skadden and
BM&A. Linklaters and Lefosse headed up the US and Brazilian legal work for
Celfin.
Skadden often assists BTG Pactual; the bank’s legal counsel, Jonathan Bisgaier,
headed the US firm’s São Paulo office until he joined BTG in 2008,
while BM&A regularly assists the investment bank with its M&A activity,
including BTG Pactual-controlled WTorre’s real estate merger
with BRProperties and BTG’s acquisition of the
ailing Banco PanAmericano. The pair also represented BTG
Pactual in a record US$1.8 billion private placement of its shares to a
consortium of international investors, which took counsel from Linklaters LLP and Lefosse. In 2011 BTG Pactual raised US$1.5 billion
(more than double the estimated figure) for a private equity fund, with the
help of Simpson Thacher, BM&A and Maples and Calder.
Counsel to Banco BTG Pactual
US
Skadden, Arps, Slate, Meagher & Flom LLP
Partners Michael Civale in New York and Richard Aldrich in São Paulo
Brazil
Machado, Meyer, Sendacz e Opice Advogados
Partners Cristina Tomiyama and Daniel de Miranda Facó
Bermuda
Conyers Dill & Pearman
Partners Alan Dickson, consultant Gabriela Romano, and associate Neil Henderson
Counsel to BTG Pactual, Bradesco BBI, Goldman Sachs and JP Morgan
US
Shearman & Sterling LLP
Partner Mathias von Bernuth and associates Fernanda Iacia and Pedro Gonzalez in São Paulo and partner Stuart Fleischmann and associate Kevin Younai in New York
Brazil
Lefosse
Advogados
Partners Carlos Barbosa Mello and Rodrigo Junqueira, and associates Ricardo
Prado, Jana Araújo, Cesar Fischer and Elisa Fachin
(Latin Lawyer 25.04.2012)
(Notícia na Íntegra)
