Milbank, Tweed, Hadley & McCloy LLP is representing major Chilean bottler and beverage producer Compañía Cervecerias Unidas S.A. (CCU), and its consolidated subsidiaries, in the offering of $670 million in shares in the form of American Depository Receipts (NYSE: CCU) and rights, listed and traded on the New York Stock Exchange.
The equity offering comprises approximately 22.6 million shares of CCU common stock and is an integral part of the company’s capital increase whereby it is offering 51 million shares of CCU common stock. American Depository Receipts (ADR) are issued by US banks and denominated in U.S. dollars, allowing investors to trade foreign stock on U.S. exchanges, including the AMEX and Nasdaq as well as NYSE. The remaining 28.4 million shares are being sold through a global rights offering during which rights holders may exercise their rights for shares or ADRs or may trade their rights on the NYSE and on Chilean stock exchanges.
Milbank partner Marcelo Mottesi, head of the firm’s Global Securities practice leads the deal team. Also working on the transaction is Global Securities partner Paul Denaro and Tax partner Andrew Walker, along with Global Securities associates Sam Badawi, Michael Lee and George Naya and Tax associate Joseph Reich; all based out of the New York office.
Based in Chile, CCU also has operations in Argentina and Uruguay, where it commands a nearly one-third market share in the beverage sectors in which it competes. The company is the largest brewer in Chile and the country’s largest producer of bottled water, nectars, and pisco (brandy). It is Argentina’s second-largest brewer, and the second-largest soft-drink producer and wine exporter in Chile. CCU exports wine to 85 countries, and has licensing or distribution agreements with major international food and beverage brands including Heineken, Anheuser-Busch, PepsiCo, Seven-Up, Schweppes, Guinness, and Nestlé.
Mr. Mottesi said, “CCU continues to expand its reach across Latin America and globally and the company’s strong showing in this large ADR offering on the New York Stock Exchange is a great reflection of the company’s stature.”
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm providing innovative legal solutions to clients throughout the world for more than 140 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Singapore, Tokyo and Washington, DC.
Milbank's Latin America Practice Group is one of the most successful and diverse in the region. The group’s attorneys have advised clients on some of the largest and most innovative transactions across the Americas. Attorneys in the group specialize in securities, M&A, project finance, private placements, litigation & arbitration.
