Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados has helped a Banco Modal fund acquire a minority stake in oil and gas pipe manufacturer Brastec, part of a growing trend among private equity groups that are keen to invest in companies with expertise in Brazil′s developing energy industry.
The 70 million reais (US$37.7 million) deal for a minority stake, the exact size of which remains confidential, closed on 13 December. Machado, Meyer, Sendacz e Opice Advogados provided counsel to Brastec.

Modal wants to use Brastec′s expertise in Brazil′s fast growing oil and gas industry as a platform for the acquisition of competitors in Brazil and abroad, with a view to eventually creating a major player in the industry.

According to Mattos Filho partner Giovani Loss, the strategy fits into a wider trend in Brazil. "There is a very strong movement of private equity in Brazil acquiring interest in oil services providers," he says.

Loss says that Modal′s turning to Brastec as a "source of expertise and knowledge" for future investments is emblematic of the "gap of knowledge" between financial institutions and the oil and gas industry in Brazil. "This is a new industry in Brazil that has been growing very fast, so there is a lot of interest but not the same level of expertise," he says.

The transaction represents the first time that Mattos Filho has worked with Modal, which approached the firm as result of its experience in oil and gas deals. "We are not regular counsel, but we hope we will be," says Loss.

Counsel to Banco Modal

Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados

Partner Giovani Loss and associates Felipe Gibson, Diego Fagundes and Rafael Thor

Counsel to Brastec

Machado, Meyer, Sendacz e Opice Advogados

Partner Daniella Tavares and associates Guilherme Santos, Guilherme Pinheiro and Arthur Zeger

(Latin Lawyer 10.01.2012)
 
(Notícia na Íntegra)