Campos Mello Advogados is advising Norwegian hydropower company SN Power in its biggest transaction ever - the acquisition of a stake in Brazilian renewable energy company Desenvix to form a joint venture for the development of hydropower in Brazil.

Desenvix - the power generation arm of Brazilian engineering company Engevix - relied on Machado, Meyer, Sendacz e Opice Advogados in the transaction, the agreements for which were signed on 12 August for 705 million reais (US$430 million).

Through the deal, Desenvix is now jointly controlled by SN Power, which takes a 40.7 per cent stake, and Engevix′s owners, the Jackson Group, who remain in control of a similarly-sized share. Pension fund Fundação dos Economiários Federais (Funcef) retains its minority stake of 18.7 per cent.

The three partners involved added a degree of difficulty for the lawyers involved. "It was a highly complex transaction in the negotiation of the new corporate governance of the company, which had to give SN Power and Jackson equal rights, while keeping Funcef satisfied with its governance rights, as a relevant shareholder," says a spokesperson for Machado Meyer.

The signing has brought an end to Desenvix′ search for the equity funding the company needed to continue its plans, while the JV will enable SN Power to reach its growth objectives for the Brazilian market.

The parties expect the deal to close within six months, following approval from Brazilian regulators.

Counsel to SN Power

Campos Mello Advogados

Partners Luiz Antonio Lemos and Fabiano Gallo, and associate Carla Steinberg

Counsel to Desenvix

Machado, Meyer, Sendacz e Opice Advogados

Partners Flavio Meyer, Fernando Tonanni and Guilherme Malouf, and associates Rafael Andrade, Teo Galvão, Ricardo Maito da Silveira and Gustavo Taiar

(Latin Lawyer 06.09.2011)

(Notícia na Íntegra)