ATCO acquires 40% interest in Neltume Ports S.A.

On September 12, 2018, ATCO completed its acquisition of 40 per cent of Neltume Ports, a leading port operator and developer in South America, for approximately $450 million. Neltume Ports, a subsidiary of Ultramar, operates in 16 port facilities and three stevedoring businesses primarily located in Chile and Uruguay.

ATCO will fund its investment in Neltume Ports with a combination of cash on-hand and funds from committed credit facilities, and later refinance a portion through a capital markets transaction. ATCO will acquire a 40-per-cent interest in Neltume Ports through the issuance of new shares from Neltume Ports. Funds from ATCO’s investment will be used by Neltume Ports to finance opportunities for growth. The acquisition is expected to be accretive to ATCO’s earnings per share in the first full year of ownership, as well as deliver sustainable profitability through the execution of Neltume’s growth plans.

Bennett Jones LLP represented ATCO with a team led by William Osler and including Kathryn Shaw and Luke Morrison. Chilean counsel to ATCO was Cariola Diez Perez-Cotapos, with a team led by Pedro Lluch and including Catalina Marisio and Kevin Hes.

Ultramar was represented by Grupo Vial Serrano Abogados in Chile.

Lexpert Copyrights © Thomson Reuters Canada Limited