Inversiones y Rentas S.A. made a tender offer to acquire an 4.44% stake in Compañía Cervecerías Unidas S.A. for CLP 110 billion.
May 17, 2021
Share
Inversiones y Rentas S.A. made a tender offer to acquire an 4.44% stake in Compañía Cervecerías Unidas S.A. (SNSE:CCU) for CLP 110 billion on May 17, 2021. Under the terms of the offer, Inversiones y Rentas S.A. will acquire for CLP 6,800 per share. Inversiones y Rentas S.A. intends to fund the purchase of the shares with borrowings under a long-term facility entered with Scotiabank Chile in February 2021 (as amended in March 2021) providing for borrowings of up to 5,200,000 Unidades de Fomento. The offer is expected to commence on May 19, 2021. The tender offer will expire on June 17, 2021, subject to extension. Post-closing, Inversiones y Rentas S.A. will hold 66% stake in Compañía Cervecerías Unidas S.A.
The tender offer will be subject to customary conditions, and compliance with applicable U.S. and Chilean regulations. The offer is not subject to the obtaining of any financing. On May 17, 2021, the Board of Directors of Inversiones y Rentas S.A. approved the transaction. Goldman Sachs & Co. LLC acted as the dealer manager, Banchile Corredores de Bolsa S.A acted as the tender agent, Computershare Trust Company, National Association and Computershare, Inc. acted as the share tender agent, Marcelo A. Mottesi, Andrew R. Walker and Sam Badawi of Milbank LLP acted as the legal advisor and Georgeson LLC acted as the information agent for Inversiones y Rentas S.A. JPMorgan Chase Bank N.A. acted as depositary for Inversiones y Rentas S.A.
Compania Cervecerias Unidas S.A. is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. The Company operates as a brewer, soft drinks producer, water and nectar producer, wine producer and pisco distributor. The Company's segments include Chile, International Business and Wine. The Company carries a portfolio of products, which includes a range of brands of alcoholic and non-alcoholic beer, with Cristal as its primary brand in Chile. In addition, it produces and distributes Heineken beer; distributes Sol beer and Budweiser beer, and distributes and produces Kunstmann and Austral beer in Chile. The International Business segment includes operations in Argentina, Paraguay and Uruguay. The Company, through Vina San Pedro Tarapaca S.A. (VSPT), produces and markets a range of wine products for the domestic and mainly the export market.