Vale concludes sale of stakes in VLI to Brookfield

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Vale concludes sale of stakes in VLI to Brookfield

Vale has concluded the transaction announced on December 23, 2013, transferring 26.5% of the total capital of VLI, one of Brazil's largest rail and port logistics businesses and subsidiary of VALE SA, to investment funds managed by Brookfield Asset Management for R$2 billion (US$883.6 million).

As a result of the completion of this transaction, Vale now holds 37.6% of VLI's total share capital.

The terms of Brookfield's investment include a mechanism to ensure that a minimum return is achieved over a period of up to six years from closing, which is expected to occur in the first half of 2014.

Vale SA, the world's third-largest mining company, in September 2013 sold a 20 % stake in the VLI unit to Mitsui for 1.51 billion reais ($675 million) and 15.9 % to the FI-FGTS fund, the investment branch of the public pension fund FGTS,  for 1.2 billion reais ($525 million).

VLI is one of the largest logistics operators in Brazil, providing transport of general cargo in Brazil through an integrated system of railroads, ports and inland terminals. Its rail consists of over 4,000 km under concession and is integrated with five inland terminals and three ports. The system covers eight states which represent approximately 60% of the country's GDP.

VLI expects to deploy over R$6.0 billion to upgrade and expand operations over the next seven years, allowing it to capture volume growth from increased activity in the agriculture, steel and other industrial sectors in Brazil.

List of country news

Country news

  • September 01, 2014

    Espiritu Santo launches public consultation for water transport PPP project

    The Brazilian state of Espirito Santo is planning a new PPP project to develop water transportation facilities in the metropolitan area of Greater Victoria. Read more
  • September 02, 2014

    Only one bidder for Belo Horizonte beltway PPP

    The only bidder for the tender process launched on June 25th has been the consortium Rota Metropolitano Norte. The team is formed by Odebrecht Transport, Barbosa Mello Participações e Investimentos and EcoRodovias Infraestrutura e Logística. Read more
  • September 05, 2014

    Parana plans PPP for port tourism redevelopment project

    The State of Paraná (Brazil), through the Port Authority of Paranaguá and Antonina (APPA), has launched a tender process to develop the feasibility studies to develop the social and tourism infrastructure at the port through a public-private partnership (PPP) project. Read more
  • September 08, 2014

    Alagoas' Casal awards US$125 million wastewater PPP

    The Sanitation Company of Alagoas (CASAL), Brazil, has awarded a a sanitation public-private partnership (PPP) project to local consortium Maceió Saneamento. Read more
  • September 09, 2014

    BNDES approves 489m bridge loan for galeao airport in rio de janeiro

    The Brazilian Development Bank (BNDES) in late August approved a bridge loan in the amount of R$1.106 billion (US$489 million) for Aeroporto Rio de Janeiro S.A., which operates the Antônio Carlos Jobim (Galeão) airport concession for 25 years. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.