Pátria Investments’ Acquisition of ContourGlobal plc’s Brazil Hydro Business

In UK Slaughter and May, advised on the matter.

Slaughter and May advised ContourGlobal with a team including Christian Boney (Picture – Corporate M&A), Gareth Miles (Tax M&A and Deal Advisory).

ContourGlobal plc, an international owner and operator of contracted wholesale power generation businesses, disposed to Pátria Investments of nine run-of-river hydro-electric generating power plants in Brazil by a majority-owned subsidiary of ContourGlobal. The disposal values the Brazilian hydro assets at 1.73 billion BRL ($313 million USD) including the assumption of net debt and other customary adjustments, with an implied valuation of 9.7x LTM Q3 2021 EV/EBITDA. ContourGlobal expects proceeds from the disposal net of tax, and reflecting ContourGlobal’s underlying share of ownership, of c. $110m USD.

The disposal is classified under the Listing Rules as a Class 1 transaction and therefore is conditional, among other things, on the approval of ContourGlobal’s shareholders. The disposal is expected to complete in the second quarter of 2022.

Slaughter and May, together with Pinheiro Neto Advogados, is supporting the in-house legal team at ContourGlobal, led by Amanda Schreiber (General Counsel).

Slaughter and May’s team included Christian Boney (Picture), Partner, Richard Hilton, Associate, Cameron Anderson, Associate, Gareth Miles, Partner, Jamshed Bilimoria, Associate and Alison Lim, Associate.

Involved fees earner: Cameron Anderson – Slaughter and May; Jamshed Bilimoria – Slaughter and May; Christian Boney – Slaughter and May; Richard Hilton – Slaughter and May; Alison Lim – Slaughter and May; Gareth Miles – Slaughter and May;

Law Firms: Slaughter and May;

Clients: ContourGlobal;

Author: Giulia Di Palma