Brazilian water utility Companhia de Saneamento de Minas Gerais (CSMG) has successfully raised US$243 million in a share offering, despite market conditions stalling the deal.
 
Machado, Meyer, Sendacz e Opice Advogados provided Brazilian counsel to the issuer and advised its coordinators BB Banco de Investimento, Citigroup Global Markets Brasil, Corretora de Câmbio, Títulos e Valores Mobilários and Banco de Desenvolvimento de Minas Gerais.
 
Adverse market conditions meant the transaction was delayed. "We then had to reach an understanding with Brazil's securities regulator, the CVM, to establish a procedure to resume the transaction," says Machado Meyer partner Eliana Chimenti.
 
Chimenti says the parties were happy to rely solely on Machado Meyer because they were satisfied that the chances of a conflict of interests were low. "Besides, since our firm advised the underwriters in [CSMG]'s IPO in 2006, we already had a strong knowledge of the company, which saved time on the due diligence processes of the transaction," she adds.
 
CSMG is the water and sewage utility for the state of Minas Gerais. Chimenti says the fact that "the selling shareholders and the company are public entities made the matter particularly interesting to work on".
 
The state government's mineral mining project, Companhia de Desenvolvimento Economico de Minas Gerais (Codemig), and the administration of state capital Belo Horizonte sold shares in the company.
 
Counsel to CSMG and BB Banco de Investimento, Citigroup Global Markets Brasil, Corretora de Câmbio, Títulos e Valores Mobilários and Banco de Desenvolvimento de Minas Gerais.
 
 
Machado, Meyer, Sendacz e Opice Advogados
 
Partners José Roberto Opice, Eliana Ambrósio Chimenti, and associates Gustavo Rugani do Couto e Silva Bruna Passos Piagentini and Gustavo Secaf Rebello
 
US counsel to CSMG
 
Shearman & Sterling LLP
Partners Richard Aldrich and Lukas Rhomberg
 
US counsel to the banks
 
White & Case LLP
Partners John Vetterli and Lea Yassuda
 
(Latin Lawyer 27.05.2008)