China Southern Power Grid International (CSGI) has called on Miranda & Amado in Lima to obtain a multibillion-dollar financing to close its US$3.1 billion acquisition of Enel’s Peruvian assets, following a long period of scrutiny by local antitrust authority Indecopi.
Italian energy group Enel relied on Hogan Lovells in Rome and Peru’s Rebaza, Alcázar & De Las Casas.
CSGI secured US$2.3 billion worth of financing from The Export-Import Bank of China to fund the acquisition.
The lender called on two offices of King & Wood Mallesons and Philippi Prietocarrizosa Ferrero DU & Uría (Peru).
Latin Lawyer understands that A&O Shearman advised CSGI on both the acquisition and financing, but could not confirm this before publishing.
The acquisition closed on 12 June, more than a year after the deal was signed. The financing closed on 23 May.
Following the closing, CSGI acquired an 83.15% stake in Enel Distribución Perú, whilst Enel X Perú – an entity focused on advanced energy services – was bought by North Lima Power Grid Holding, a wholly-owned subsidiary of CSGI.
The transaction is thought to represent the largest acquisition ever by a Chinese party in Peru.
The parties signed the agreement in April 2023. Local antitrust regulator Indecopi approved the transaction under the applicable merger control regime in February. The Chinese governmental entities also authorised the outbound direct investment.
Enel’s divestments in Peru is part of its debt reduction strategy, in which it is selling off assets to focus its business on six key jurisdictions: Italy, Spain, Brazil, Chile, Colombia and the US.
In another recent deal, Enel sold two of its Peruvian subsidiaries to Actis-controlled Niagara Energy for US$1.3 billion, a deal that also featured Rebaza Alcázar as counsel to the Italian group.
Established in 2002, CSGI is based in Guangzhou and invests, builds and manages electricity networks across China. The group also controls energy distribution assets in Brazil, Chile and Peru.
For the acquisition financing
Counsel to The Export-Import Bank of China
Philippi Prietocarrizosa Ferrero DU & Uría (Peru)
Partner Ronald Fernandez Davila and associates Sergio Rodriguez, Victor Bravo, Steven Hu Huang and Maria Jose Canales in Lima
