9 ■I I
TYPICAL
CROSS-BORDER
EFFORT
C00PERAT10N PAYS OFF
23
Rl Spain
What: Abengoa's acquisition of Dedini Agro
R! Brazil
Rl Spain
Femandö Gare» de León - Associate Directer M&A
Raü! Alcocer - Analyst M&A
Sergio Dlaz de Rabago - Senior Relationsbip Manager
Gustavo Oubinha - Head C&SF
Umberto Ortolan - Senior Project Manager C&SF
Regina Nagamory - Project Manager C&SF
Fabio Paniza - Rêlationship Manager
F&A M&A Europe:
Maarten ter Haar
Armando de Sarina
Emmanuel Durand
Abengoa is a Spanish industrial and techno-
logical group operating in over 70 countries
with five business activities - industrial
engineering and construction, IT systems,
industry environmental services, solar energy
and bio energy. "In February this year, Aben
goa told us they were seriously considering
investing in the Brazilian ethanol market",
says Sergio Di'az de Rabago, senior rêlation
ship manager at Rabobank International
Spain Branch. He continues: "Senior Abengoa
executives travelled to Brazil to meet with
several investment banks. Rabobank was one
of them. The Abengoa people were im-
pressed with our team's deep knowledge of
the local industry". Following the opening of
the sale process of Grupo Dedini Agro -
a large Sao Paolo based sugarcane proces
sor and sugar and ethanol manufacturer
- Abengoa appointed Rabobank its exclusive
fïnancial advisor in May for a possible acquisi
tion of Dedini. Entering the Brazilian market
was a logical step for this Spanish multina
tional, already the leader and number 5 in
the EU and USA ethanol markets respectively.
Together with the USA, Brazil is the biggest
ethanol market in the world.
The acquisition of 100% capital of Dedini was
fïnally closed on 26 September, for a total
consideration of USD 684 million (equity plus
debt). Dlaz: "Apart from the important direct
fees earned, acting as advisors in this land
mark cross-border acquisition gives Rabobank
even greater visibility in the bio fuel market.
The acquisition also leads us to more business
opportunities. We have approved a bridge
credit facility for Dedini. Rabobank Interna
tional Brazil is best placed to lead a planned
local long-term debt restructuring for this
company. And in Spain we participate in the
corporate credit granted to Abengoa for the
financing of the acquisition".
The deal has been a typical cross border ef-
fort. Dlaz: This deal has been possible thanks
to the great existing rêlationship between
Rabobank and Abengoa. Rabobank is a core
partner for Abengoa in the bio ethanol busi
ness, with a wide range of products in an
increasing number of countries in Europe, the
USA and Brazil. Relations management is han
dled from Madrid. Through Project Finance
Utrecht, we hold leading fïnancial positions in
their European plants. Food and Agri Research
has acted as feedstock advisors for them in
France and elsewhere and is a valued contact
for them. Meanwhile the Chicago office has
a senior role in the project financing of two
new plants, and GFM London is doing some
hedging for them. M&A has now achieved this
great deal and the Brazil office is becoming an
important partner for their Dedini business".
"Most importantly" emphasises Diaz, "the deal
would not have happened without the sound
rêlationship existing in Spain with the group,
excellent local knowledge of the Brazil office,
the great teamwork of the many professionals
involved, and the close cross-border co-op-
eration between our offices in Sao Paolo and
Madrid".
issue 15 THE WORD
