Cleary Gottlieb represented Newbridge Andean Partners LP in the ownership restructuring and eventual sale of a minority stake in Venezuelan propane gas distributor Tropigas S.A.C.A. to a subsidiary of state-owned energy giant Petroleos de Venezuela. The transaction closed on November 15.
The sale came pursuant to president Hugo Chavez’s plan to nationalize the propane gas distribution industry in the Bolivarian Republic of Venezuela under PDVSA Gas Popular S.A., and was negotiated by NAP’s local partners. In Venezuela, propane gas is distributed to households in metal containers. According to press reports, prior to the nationalization, the sector had been experiencing declining results due to labor troubles and strict price controls.
Newbridge Andean Partners is a private equity fund managed by ACON Investments LLC.