Carey counsels Falabella on $800m capital increase

Chilean law firm Carey has advised department store chain Falabella on a capital increase and secondary shares offering for a total of $800 million.



The capital raise comprised $380 million of newly issued shares and $160 million of secondary, and which were placed through a public auction on the Santiago Stock Exchange, and also involving an international private placement.

The operation was a complex one, due to it combining the sale of primary and secondary shares, requiring negotiation between the company and the secondary seller, and it included both a local public offering and an international private offer. The operation also involved the coordination of the seven groups that form part of the controller group, Carey said.



Falabella is the largest department store chain in South America, with outlets in Argentina, Chile, Colombia and Peru.


Carey served as local counsel to Falabella and Davis Polk served as the company’s US counsel. Garrigues served as local counsel to the placement agents, and to which Cleary Gottlieb served as US counsel. B&E acted as counsel to the Juan Cúneo family, the secondary seller.



Carey’s team was made up of partners Cristián Eyzaguirre and Francisco Guzmán, counsel Patricia Silberman and associates Giannina Veniú and Yoel Magendzo.