Tomás Kubick and Roberto Guerrero

Cuatrecasas on CSH capital increase

Cuatrecasas, through its Santiago office, has advised Compañía Siderúrgica Huachipato (CSH) on the agreement of a capital increase to be paid mainly by its parent company, CAP, through a controlled related-party transaction process and its subsequent placement.

This is a transaction of great strategic and legal relevance since, on the one hand, it is part of CSH’s plan to strengthen its presence in the steel industry in Latin America and, on the other hand, it means an improvement in its financial ratios and charges, while substantially improving its equity situation.

The transaction involved not only a capital increase but also its treatment as a related party transaction, which implied compliance with high corporate governance, legal and procedural standards. Specifically, because part of the disbursement was made through the capitalisation of credits that its parent company CAP had against the company, the mandatory expert report was complied with, which accredited that the operation was in accordance with the company’s interests and was carried out under market conditions.

Cuatrecasas’ team was led by partner Tomás Kubick (pictured left), with the support of partner Roberto Guerrero (pictured right) and associate Pilar Illanes.

L Giselle Estrada