RIO DE JANEIRO (Reuters) – Citigroup (C.N) and a group of Brazilian funds sold a stake in the company that operates Rio de Janeiro’s subway system for about 1 billion reais ($430 million), the companies said on Tuesday.
Citigroup Venture Capital International Brazil, a private equity fund, and Brazilian fund IIFIP will sell their stakes in Oeste Participacoes to Megapar for 841.41 million reais. Oeste is part of the controlling shareholder group of Concessao Metroviaria do Rio de Janeiro, the Rio subway.
Megapar is a holding company controlled by construction group OAS and Previ, the pension fund for Banco do Brasil (BBAS3.SA) employees.
OAS and Previ said in a securities filing the purchase is part of a plan to “increase and diversify” their holdings in infrastructure projects. They plan to join with Petros, the pension fund for oil giant Petrobras (PETR4.SA), and Funcef, the fund for federally controlled Caixa Economica Federal, in future investments.
Valia, the pension fund for workers at mining giant Vale (VALE5.SA)(RIO.N), will sell a 15 percent direct stake in Concessao Metroviaria to Megapar for 154.32 million reais.
(Reporting by Elzio Barreto; editing by Gunna Dickson)