H2Olmos, a subsidiary of the construction and engineering Brazilian company Odebrecht, was awarded by the Peruvian government with the construction and operation of the Olmos Project in northern Peru, including the bidding and sale of 38,000 hectares of land (nearly 94,000 acres) to be irrigated with water flowing from the Huancabamba river.
“Intralinks Dealspace was very easy to manage. We were able to see who logged on or downloaded documents, then filter out and provide the necessary agricultural information to only the most serious bidders. We would definitely use Intralinks again.”
– Tatiana Feijoo Ampuero, Project Manager, Sales Division, H2Olmos-Odebrecht
The first step in the project was to attract buyers and sell each parcel of land. Here’s how Intralinks Dealspace helped them optimize the auction process, surpass their goals across an international group of buyers, and begin a mission of providing new water sources to a part of the country that needed it.
The Odebrecht team needed to attract land buyers from a international audience. After interested parties received some preliminary information about the sale from a dedicated Odebrecht website, an internal committee vetted each applicant for access to the Intralinks VDR. Intralinks would allow potential buyers to view deal documents, 24/7 and across time zones, in one secure, online exchange. But how do you narrow a vast field of qualified applicants down to serious bidders and possible land buyers—while providing information accurately and securely?
H2Olmos would need to provide, online, vital information like risk, mapping, climate conditions, soil, water, and yield to prospects—with the ability control which applicants share that data, and how. To maintain confidentiality among prospects, operational security was crucial. As the deal got closer to auction, that meant differentiating between “interested” parties who would be marketed more public information, and more serious potential bidders, who could get more sensitive data such as legal and financial statements.
The H2Olmos team knew that an Intralinks VDR could combine robust 360-degree security with the ability to target different user groups with varying access. So, on the Intralinks VDR, the team created secure, restricted categories for their interested parties. Then they were able to gauge interest among more than 500 applicants by picking out those more likely to make bids. By using Intralinks’ access monitoring features, the team could easily see who accessed documents more often than others...and target them specifically for followup.
H2Olmos made the land sale successful to 12 buyers for over $180 million. Throughout, Intralinks Dealspace helped them sift through a potentially long process of weeding out and uncovering the most serious bidders. Knowing who logged on most, or who downloaded certain documents, made the due diligence and auction phases move faster. Plus, IntraLink’s document-level permission settings made it easy for Odebrecht to ensure bidders the strictest confidentiality. The company could disseminate vital land and financial information and protect it from leaks, unauthorized printing or distribution, and keep serious bidders focused on all the important data they needed for auction. Also, bidders were required to sign a legal disclaimer, therefore protecting the company of potential future legal issues.
Intralinks Dealspace proved to be an enterprise-grade solution that could be up and running quickly, and easy to to manage. Complete security controls (such as print-screen protection, document watermarking, and user permissions) kept the land bidding process secure. And the H2Olmos team had a great source of business intelligence as well, thanks to a user-friendly dashboard that let them monitor —in real-time— which parties were heavily engaged in the sale. After having saved time and resources by the time the deal was closed, H2Olmos discovered another added benefit of Intralinks: complete backups that reported usage by party, group, and activity.
By the Numbers:
500: Parties from which Odebrecht easily managed access to the Intralinks VDR based on interest level
$180 Million: Amount generated by the sale of land in the Olmos project
40,000: Direct Jobs will be created by the Olmos project
12: Buyers who eventually bought in the Olmos project land auction through the Intralinks VDR