According to Transactional Track Record (TTR) platform, the number of operations in Peru year to date decreased 43% compared to 2019. The total number of deals was 63 and hardly might reach 149 as the past year.

Narrowing the analysis just to the third quarter of the year things look a little better. In comparison with the two previous quarters there is a significant increase. The number of transactions was 22, almost 16% up from the previous quarter. Most excitingly, the total aggregate value of the transactions rises to more than 250% of the amount of the ones from the second quarter. (See table).

The decrease in the total aggregate value of the transactions offers a scope less optimistic. The reduction of 88% regards the past year shows what might be explained by the effect of the COVID pandemic. Despite of the ascension of transactions and value from the third quarter regarding the two previous quarters of 2020, the comparison with the 3rd quarter of 2019 shows that it was a bad period no matter the increment. A 29% contraction in the number of operations, and almost 95% of the aggregate value compared from the 2019 3rd quarter, does not allow discussion onto the drop of business from last year.

The United States stayed as the country of origin of most of the inversions in Peru, and Mexico and Chile are the prefered targets of Peruvian investors.

The most notable deal of the third quarter was the acquisition of Orazul Energy Peru by Grupo ISA. The operation was executed through the subsidiary Interconexión Eléctrica - ISA, which purchased Inkia Energy, a portfolio company of I Squared’s Capital. Scotiabank acted as Mandated Lead Arranger and Underwriter. The total value of the operation was $158.50 million.

Estudio Echecopar advised Interconexión Eléctrica - ISA as buyers with a team led by partner Liliana Espinosa (pictured left), and which involved associates Inés Vazquez and Uldarico Ossio. Interconexión Eléctrica - ISA also was assited by Baker McKenzie US by associates Jonathan Farroknhia and Nick Marchica.

Rodrigo, Elías & Medrano Abogados counselled sellers Inkia Energy with a team led by partner Luis Enrique Palacios (pictured right), and which involved associates Ana Sofia Restrepo, María Angélica Meneses, and Nicolás Cornejo. Also White & Case US assisted Inkia Energy with a team formed by partners Marwan Azzi and Steven Gee, and associate Jordan Kobb.

Garrigues Perú assisted Scotiabank with a team led by partner Sergio Amiel, and which involved senior associate Jorge Calle.

 

Source: Iberian Lawyer - Spain