Aguas Andinas, Chile’s largest water utility, was selling a 30% stake in its company. The company selected Intralinks to run its data room and successfully generated USD $980 million for 1.83 billion shares.
“ If you have a physical data room you’re very limited in what you can accomplish. I was thrilled with Intralinks because of the significant impact they had on the efficiency of our sale.”
- Carlos Calderon, Investor Relations, Aguas Andinas
On February 27, 2010, a devastating earthquake struck Chile. In May 2011, the Federal Bank of Chile (CORFO) decided to raise capital for the earthquake recovery effort by selling 30% of its stake in Aguas Andinas, a regulated water and sewage company serving 6.2 million people in and around Santiago.
How do you quickly reach qualified prospective bidders around the globe and generate maximum value for your stock? In 2004, when Aguas last negotiated a stock sale, it used a paper-based data room for the due diligence process. Potential buyers had to travel to Chile to review the documentation, adding months and considerable cost to the process.
This time Aguas wanted to accelerate the process so as not to slow the earthquake recovery as well as to achieve maximum value for its shares. Time was of the essence. Using a physical data room would have limited the number of interested investors and potentially lessened the sale price.
Aguas selected Intralinks Exchanges™ to support the due diligence process. CORFO had experience working with virtual data rooms and suggested Aguas use Intralinks to manage the sale. With the help of virtual training and the Intralinks client services team, Aguas had its data room up and running in just hours. Intralinks shared best practices with the Aguas team and created a document index based on the information requirements. Aguas used the index to quickly and effectively organize over 1,000 documents in the data room.
Intralinks facilitated a smooth due diligence process and enabled Aguas to sell a local asset to an international market. With Intralinks, Aguas had on-going visibility into what information was being accessed and by whom, which enabled the company to quickly and accurately estimate how investors were valuing the company. On June 15, CORFO’s 1.83bn shares sold for CLP 458.6bn (USD $980.6m) on the Santiago Stock Exchange.
Most of the interested parties were already Intralinks users and could employ their existing single password to access the familiar platform, helping expedite the process. The ability for multiple parties to simultaneously review the large number of documents reduced the process from months to weeks. Demand for the stake was strong among a mix of domestic Chilean institutions, international Latin American investors and dedicated infrastructure accounts.
In addition, Aguas was easily able to use Intralinks’ Q&A feature to manage and organize buyer questions and responses. Bidders would submit their questions through the online interface while they were reviewing documentation. Questions were automatically routed to the appropriate expert, and responses could be posted to an FAQ section for all bidders to read.