Brookfield Infrastructure Partners, the Canadian firm, has received clearance to exit minority stakes in five related electricity transmission investments in Brazil.
The Canadian firm said in a statement that BNDES, the Brazilian development bank and the lender to the five, has cleared the sale of TBE. It is now expected to complete on 30 June, Brookfield added.
The firm announced last September it wanted to sell the minority holdings ranging between 7 and 18 percent – because they were not strategic investments. It said at the time that the firm decided to exercise a put option allowing Brookfield to realize “an attractive capital gain” and help “position Brookfield Infrastructure to take advantage of the current environment to expand our infrastructure platforms.”
The investments have Brookfield exposure to long-term concession contracts for more than 2,100 kilometres of electricity transmission lines in Brazil. The revenue comes in an annual payment not linked to usage.
Proceeds from the sale should be around R$480 million. The investments have a book value of $195 million, according to an investor relations presentation.
Brookfield Infrastructure Partners, which was established by Brookfield Asset Management, owns electricity transmission systems, timberlands, and social infrastructure in North and South America as well as in the UK and Australia.