Latin Lawyer – Fredrik Karlsson
Pinheiro Guimarães and Stocche Forbes Advogados have helped reinsurance company Austral Resseguradora merge with counterpart Terra Brasis Resseguros in a deal worth 1.6 billion reais (US$415 million), which will create Brazil’s second-largest reinsurance company.
Pinheiro Guimarães advised one of Austral’s shareholders, International Finance Corporation (IFC), while Stocche Forbes helped the other, private equity company Vinci Partners.
Pinheiro Guimarães also helped IFC as a shareholder in Terra Brasis. That company’s other stakeholder, Banco Brasil Plural, relied on Dias Carneiro Advogados.
The tie-up, which will be completed through a stock swap, was signed on 12 June.
Once complete, Vinci Partner will hold a 62% stake in the new entity, while Brasil Plural will have 20% and IFC the remainder. The combined company will be Brazil’s second-largest reinsurer after IRB-Brasil Resseguros.