During August, transactions were announced and completed in Chile across multiple industries. Among the completed transactions, the sale of Katari Hotelería Limitada, owner of the Tierra Hotels in Chile, stands out. The Purcell and Matetic families, along with other minority shareholders, sold 83.5% of the company to Baillie Lodges, owned by KSL Capital Partners, for an undisclosed amount.  With this acquisition, Baillie Lodges became the controlling shareholder of the luxury hotel company and of the three Tierra hotels: Tierra Patagonia, located within the Torres del Paine National Park; Tierra Atacama, in the Atacama Desert; and Tierra Chiloé, on the island of Chiloé. Baillie Lodges is a leading lodging company with global presence, with assets concentrated in Australia, New Zealand and Canada. The company plans to expand its hotel platform through the acquisition and development of new projects.

Another important transaction that took place during August was the sale of Mega Archivos and HQB. The assets, originally owned by Red Megacentro, were sold to Access, the world’s largest private provider of information management services, for US$ 42 million. The seller, Red Megacentro, is a company operating in the warehouse leasing and logistics services industry. HQB a subsidiary of Mega Archivos, offers information management services through the custody, administration and digitalization of documents, as well as the development of software aimed at improving its client’s administrative processes. The sale of Mega Archivos and HQB is part of the company’s strategic plan to improve its financial position, as well as to strengthen and prioritize its core business activities for its strategic growth.

In the Chilean energy sector, this month Energía Latina sold 50% of its equity participation in affiliated companies Innovación Energía and Terminal Gas Caldera. The acquiror was Empresas Gasco, a company linked to the Pérez-Cruz family, for US$ 18 million. Innovación Energía is a company that develops electricity generation projects based on liquefied and natural gas, while Terminal Gas Caldera is a multi-bulk carrier maritime terminal in the Atacama Region, in the Northern Chile. The seller, Energía Latina, is an energy generation and supply company. Empresas Gasco, the acquiring party, is a leading Chilean energy company, with assets in gas supply, logistics management, marketing, among others. Both Innovación Energía and Terminal Gas Caldera were companies owned in equal parts by Energía Latina and Empresas Gasco. With this transaction, Empresas Gasco becomes 100% owner of these companies.

In the mining industry this month, Monumental Minerals acquired a 50.01% stake in the Salar de Turi Project, from Lithium Chile. The Salar de Turi Project comprises 31 exploration concessions distributed over 8,500 hectares controlled by Lithium Chile. Lithium Chile owns the world’s largest reserves of high-grade lithium and has additional properties with operating gold, silver and copper mines. The acquiring company, Monumental Minerals, is a Canadian mineral exploration company focused on the acquisition, exploration and development of critical minerals relevant for the transition to a clean energy economy. Once this transaction is completed, Monumental Minerals and Lithium Chile are expected to sign commercial agreements for the creation of a joint venture to carry out exploration, evaluation, and development works.

Lastly in Chile, in the Food & Beverage industry, Embotelladora Metropolitana sold Cerveza Volcanes del Sur to Compañía Cervecerías Unidas S.A. (CCU), part of the Luksic Group, for an undisclosed amount. Volcanes del Sur generated annual sales of US$10 million during its last annual operational period and will be now incorporated to CCU’s 17-brand beer portfolio which includes Cristal, Dorada, Escudo, Royal, Coors, Heineken y Kunstmann, among others.

In Peru and Colombia, due to political concerns, the M&A market has slightly decreased its activity during the month of August.

In Peru, Universal Mineral Services Peru was acquired by Tier One Silver and Coppernico Metals for an undisclosed amount. Coppernico Metals is a mining company specialized in extracting gold, copper and nickel in Peru, while Tier One Silver engages in the extraction of silver, gold and other types of metals, also in Peru. The two companies each acquired 50% of the shares of Universal Mineral Services Peru. Both Tier One Silver and Coppernico Metals are companies based in Vancouver, Canada and concentrate their mining activities in Peru.

Also in Peru, the German multinational Hellmann Worldwide Logistics purchased an additional 50% stake in Hellmann Worldwide Logistics S.A.C. for an undisclosed amount. With this transaction, Hellmann Worldwide Logistics became the owner of 100% of the outstanding shares of its subsidiary in Peru. The seller was Carlos Augusto Dammert, Chairman of the Board and co-founder of the Peruvian subsidiary. Hellmann Worldwide Logistics is a company with more than 150 years of experience and presence in more than 59 countries. The company offers logistics services, primarily through air, sea, road and rail transportation. The German company founded the Peruvian subsidiary with Carlos Augusto Dammert in 1998. Though the years, the company has grown to become a leader in the Peruvian logistics market, consolidating its presence in the transportation of products such as fruit, seafood, merchandise, among others. With this operation, Hellmann will continue expanding its client portfolio beyond the country’s borders while growing its business and further strengthening its leading position in the market.

In terms of announced transactions in Peru, Alpayana disclosed the purchase of Empresa Minera Los Quenuales, owner of the Yauliyacu and Iscaycruz polymetallic assets. The total deal consideration was US$ 10 million. Empresa Minera Los Quenuales is a subsidiary of Glencore Finance Bermuda, and part of the multinational conglomerate Glencore. Both polymetallic mining units have combined resources of 78 million ounces of silver and 619,000 tons of fine zinc, in addition to 205,000 tons of fine lead and 54,000 tons of fine copper. Alpayana, the acquirer, is a mining company that produces primarily zinc, lead, copper and silver, with mining operations in the Huarochiri province of Lima, Peru. This transaction is in accordance with Alpayana’s strategy to continue growing inorganically through acquisitions in Peru and Latin America.

In Colombia, one relevant transaction that closed during the month of August was the purchase of the Instituto Cardiovascular de Colombia hospital real estate, based in Floridablanca, Santander, by Medical Properties Trust, for a total amount of US$26 million. Fundación Cardiovascular de Colombia is a private, non-profit institution that owns Instituto Cardiovascular de Colombia (the asset that was sold) and Hospital Internacional de Colombia, also located in the Santander, Colombia. Medical Properties Trust is a real estate investment trust that invests in healthcare facilities subject to long-term leases. Unlike other real estate investment trusts, Medical Properties focuses exclusively on providing capital to medical facilities of all types. Since its foundation, the company, valued at US$5.4 billion, has grown to become one of the world’s largest owners of hospital real estate, with 447 facilities and approximately 46,000 licensed beds, with presence in over 10 countries throughout 4 continents. Medical Properties Trust plans to invest US$ 135 million in hospital infrastructure in Colombia.

Another important transaction in Colombia was the acquisition of Grupo Meiko by Premise Data Corporation. Grupo Meiko is one of the pioneers in collecting and managing syndicated data for traditional retail. Syndicated data is a common method used by retailers to aggregate and store information concerning their commercial and operational activity, including sales volumes, pricing, promotions, and other types of information critical to the business. Prior to the transaction, Grupo Meiko was already involved in data subscriptions with over 200,000 stores. Premise Data Corporation, the acquirer, is a company that provides on-demand information services (a method of presenting syndicated data for analysis and evaluation) and offers technology capable of mobilizing smartphone users around the world to obtain data in real time. The company is present in more than 135 countries. Some of the synergies identified from this transaction include (i) positioning Meiko at the forefront of retail analytics with Premise’s technology infrastructure and global presence, (ii) expanding Premise’s global portfolio through Meiko’s customer base, and (iii) significantly accelerating the ability to create demand density in Latin America, which is a dynamic and fast-growing market for consumer brands in today’s world.

During the month of August, M&A operations were announced and closed across multiple industries, but the majority took place in Chile. Although the year began in a context of political, social and economic uncertainty, having already passed the first half of the year, various transactions have been completed, evidencing the resilience of both foreign and local investors to consolidate their positions in the region and expand into new markets through inorganic growth.

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