Compañía Siderúrgica Huachipato agrees to capital increase by parent company CAP

Cuatrecasas has advised Compañía Siderúrgica Huachipato on a capital increase agreement, to be paid mainly by its parent company CAP S.A., listed on the Santiago de Chile Stock Exchange. The capital increase was implemented through an audited process of the related-party transaction and its subsequent placement.

This transaction has great strategic and legal importance as it is part of CSH’s plan to bolster its presence in the Latin American steel industry, and it also means better ratios and financial charges, while substantially improving the company’s assets.

On a legal level, the transaction not only involved a capital increase but also its processing as a related-party transaction, which required compliance with high standards of corporate, legal and procedural governance. Specifically, as part of the payment was made through the debt for equity swaps that CAP had over the company, a mandatory expert report was completed, establishing that the transaction was consistent with social interest and according to market conditions.

The Cuatrecasas Santiago de Chile team was led by partner Tomás Kubick, together with Roberto Guerrero and Pilar Illanes.