Carey advises Algonquin on ESSAL’s stake sale to Toesca

Carey has counselled Algonquin on all the operation related with ESSAL so far

Carey assisted Algonquin Power & Utilities Corp (APUC) on the sale of a stake in Empresa de Servicios Sanitarios de Los Lagos (ESSAL), a Chilean listed water company, to Toesca Infraestructura II Fondo de Inversión.

The advice included negotiating and preparing several documents, including a share purchase agreement and a shareholders’ agreement.

This one is the latest transaction involving ESSAL, a public utility company, whose control was acquired by Algonquin after a bidding process to purchase the majority stake from Aguas Andinas. Later, Algonquin launched a Tender Offer (OPA) for the rest of the shares, a process that allowed it to achieve a 93.96% stake in ESSAL. Finally, in December, Algonquin and Toesca executed the documents selling a percentage of approximately 30% of indirect ownership in ESSAL to Toesca. This would permit the participation of a local partner in the ownership of the utility company.

Carey team was led by partners Francisco Guzmán (pictured left), Claudio Lizana (pictured centre) and Cristián Eyzaguirre (pictured right), and involved associates Andrés Latorre, Benjamín Sáa, Daniela León, and Enzo Devoto.
Claro y Cía acted as legal counsel to Toesca with a team led by partners Matías de Marchena and Juan León.
Toesca in-house lawyer Francisca Ellis and Algonquin Power & Utilities Corp. in-house lawyer Chris Hall intervened on the transaction.