BTG Pactual and Morgan Stanley are serving as financial advisors to the selling shareholders in the transaction. Santander is acting as financial advisor to CMPort. Mattos Filho is serving as legal advisor to the selling shareholders, while Linklaters and Pinheiro Neto are acting as legal advisors to CMPort.
China Merchants Port Holdings Company Limited ("CMPort"), Advent International ("Advent") and the founding shareholders of TCP Participações ("TCP") today announced that they have signed a binding agreement whereby CMPort will acquire 90% of TCP's shares for approximately R$2.9 billion (US$925 million). TCP manages the Terminal de Contêineres de Paranaguá, one of the largest container terminals in South America, and the logistics company TCP Log.
Under the terms of the agreement, CMPort will acquire the 50% stake in TCP owned by Advent International and a 40% stake owned by the founding shareholders of TCP – Galigrain S.A. ("Galigrain"), Grup Maritim TCB S.L. ("TCB"), Pattac Empreendimentos e Participações S/A ("Pattac"), Soifer Participações Societárias S.A. ("Soifer") and TUC Participações Portuárias S/A ("TUC"). Advent, Galigrain and TCB will sell all of their shares in TCP, while Pattac, Soifer and TUC will together retain a 10% stake in the company.
The transaction, which values 100% of TCP's shares at approximately R$3.2 billion (US$1 billion), is one of the largest ever announced in the container terminal sector in Latin America. It is also the first investment by CMPort in Latin America. The closing of the transaction is subject to certain customary conditions, including regulatory approval and approval from Brazil's antitrust authority. The acquisition is expected to be completed by the end of 2017.
With annual capacity of 1.5 million twenty-foot equivalent container units (TEUs) and ongoing expansion that will increase its capacity to 2.4 million TEUs by 2019, TCP has the concession to operate one of the largest container terminals in Brazil. Located in the port of Paranaguá in Paraná State, the terminal is one of the main hubs for the import and export of cargo in Brazil, moving approximately 10% of all the containers handled in the country. Goods handled by TCP include frozen meat, a segment in which the company is the market leader with the largest number of refrigerated containers in the country; wood; components for the auto industry; chemicals; and electronic equipment. In addition to the container terminal, TCP is involved, through its TCP Log subsidiary, in door-to-port logistics, providing complete, integrated solutions to its importer and exporter clients and the largest shipping companies in the world.
CMPort is one of the largest container terminal operators globally and handled more than 95 million TEUs in 2016. In China, the group has operations in major shipping hubs such as Hong Kong, Shenzhen, Shanghai, Ningbo, Qingdao, Dalian, Tianjin, Zhanjiang and Xiamen Bay. It also has container terminal operations in countries such as the United States, Sri Lanka, Nigeria, Djibouti, Togo and Turkey as well as various countries in Asia and Europe.
Linklaters advised CMPort with a team including Kevin Cheung (Picture), Gabriel Silva and Ginny Ng.
Pinheiro Neto Advogados advised CMPort with Henry Sztutman, Christianne Zarzur, Ricardo Levy, Rodrigo Moreira, Marcos Garrido, Tiago Vieira Rocha, Renata Faria, Otavio Pereira de Carvalho and Renata Politanski.
Mattos Filho, Veiga Filho, Marrey Jr e Quiroga advised TCP – Terminal de Contêineres de Paranaguá S.A.: with Rodrigo Figueiredo Nascimento, Andrea Bazzo Lauletta, Renata Fonseca Zuccolo Giannella, Bruno Dario Werneck, Rodrigo Arthur Egual de Carvalho, Bruna Bianchini Sato, Fabiana Rocha Pasmanik, Teresa Broggi Ciardullo, Tomás Machado de Oliveira and Mário Márcio Saadi Lima.
Involved fees earner: Rodrigo Figueiredo Nascimento – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Teresa Broggi Ciardullo – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Fabiana Rocha Pasmanik – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Rodrigo Arthur Egual de Carvalho – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Bruna Bianchini Sato – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Andréa Bazzo Lauletta – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Tomás Machado de Oliveira – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Renata Fonseca Zuccolo Giannella – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Bruno Werneck – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Mário Márcio Saadi Lima – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Henry Sztutman – Pinheiro Neto; Rodrigo Romualdo Moreira – Pinheiro Neto; Tiago Moreira Vieira Rocha – Pinheiro Neto; Otavio Pereira de Carvalho – Pinheiro Neto; Cristianne Saccab Zarzur – Pinheiro Neto; Marcos Pajolla Garrido – Pinheiro Neto; Ricardo Levy – Pinheiro Neto; Renata de Almeida Faria – Pinheiro Neto; Renata Politanski – Pinheiro Neto; Kevin Cheung – Linklaters; Gabriel Silva – Linklaters; Ginny Ng – Linklaters;
Law Firms: Mattos Filho Veiga Filho Marrey Jr & Quiroga; Pinheiro Neto; Linklaters;
Clients: China Merchants Port Holdings Company Limited; TCP – Terminal de Contêineres de Paranaguá S.A.;