BEST LAW FIRM -- BRAZIL
The merger of Brazil’s two largest retailers – Casas Bahia and Globex, a unit of Pão de Açúcar – was no easy task.
After an initial
agreement had been hurriedly signed, Bahia promptly pulled out.
It was up to law firm Pinheiro Neto to get Bahia back in. The
transaction successfully closed in November 2010, says managing
partner Alexandre Bertoldi, who worked on it.
One of the major
successes of the renegotiated deal, Bertoldi tells
LatinFinance, was the change in leasing terms. "The
renegotiation helped Casas Bahia achieve a gain of about $1
billion in lease proceeds over the life of the lease," he
explains. Not only did his client get a better deal for the
lease of its real estate, the term was also increased to 10
years from three.
As part of the agreement, Bahia will be incorporated into
Pão de Açúcars home appliance
subsidiary Globex, forming a new unit to be named Nova Casas
Bahia (NCB). Pão de Açúcar agreed to
inject 690 million reais into NCB via an issue...
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