Slaughter and May advised COSCO SHIPPING Ports in relation to its conditional agreement to subscribe for 60% of the shares in Terminales Portuarios Chancay S.A. for US$225 million

Slaughter and May advised COSCO SHIPPING Ports Limited (COSCO SHIPPING Ports) on its conditional agreement with Volcan Compañía Minera S.A.A. (Volcan) and Terminales Portuarios Chancay S.A. (TPCH) to subscribe for 60% of the shares of TPCH for a total consideration of US$225 million.

TPCH is principally engaged in the design, development, and construction of a private, multipurpose terminal at the Port of Chancay, Peru and will be engaged in its operation and management after the completion of its construction.

Located 58 km north of the Peruvian capital of Lima, Port of Chancay is situated in a favourable location where it has easy access to the economic centre of Peru. The Port of Chancay is a natural deep-water harbour with a maximum of 16 meters water-depth and is capable of satisfying the needs of mega vessels. The prospective terminal at the Port of Chancay will be COSCO SHIPPING Ports’ first terminal in South America and should help reduce the deficiency in port infrastructure in Peru.

On completion of the subscription, which is subject to anti-trust and other conditions, TPCH will become a subsidiary of COSCO SHIPPING Ports, further extending COSCO SHIPPING Ports’ global presence.

Volcan is a polymetallic mining company in Peru and is a significant producer of zinc, lead and silver. It is primarily listed on the Lima Stock Exchange.  Volcan’s controlling shareholder is Glencore Plc, a Swiss mining company listed on the London Stock Exchange.

Lisa Chung Partner