Hogan Lovells guides two Brazilian equity deals totaling nearly R$8 billion

In the first deal, which closed 22 July, we represented the international placement agents BTG Pactual US Capital LLC, Itau BBA USA Securities Inc., and Santander Investment Securities Inc. in an equity offering by Brazilian real estate company Tecnisa SA. Tecnisa raised R$445.5 million in the deal, helping it to promote the company’s growth strategy and pay off debts. The Tecnisa deal is a positive sign for the international reputation of the Brazilian real estate market, which has seen a steady recovery in recent years.

The next day IRB Brasil Resseguros SA, one of the world’s largest reinsurers, closed its share offering by selling shareholders BB Seguros Participações SA, an insurance company controlled by Banco do Brasil and the Brazilian federal government.  Hogan Lovells represented IRB Brasil, as well as BB Seguros Participação S.A. and the Brazilian government as selling shareholders in the deal. The share offering involved nearly 84 million common shares and resulted in R$7.39 billion in proceeds to the selling shareholders. It is one of the largest share offerings out of Brazil over the last few years. This transaction is part of the Brazilian government’s effort to implement a privatization program.

“It is a testament to the ability of our firm to collaborate on a global level that we were able to close these two deals one right after another,” said São Paulo office managing partner Isabel Costa Carvalho. “Though the global economy faces new uncertainties each day, these deals show that Brazilian companies remain open to major transactions.”

The Hogan Lovells team in the Tecnisa deal representing the international placement agents included partners Carvalho and Sina Hekmat, counsel David Contreiras Tyler, senior associate Flavio Averbug, and associate Ana Laura Pongeluppi.

The IRB Brasil team also included partners Carvalho and Hekmat, counsel Tyler, and associate Pongeluppi, as well as attorney Arthur Amaral.