July 31, 2018 / 8:27 AM / 2 months ago

Canadian AIMCo to invest in Brazilian sanitation company

SAO PAULO (Reuters) - Canada’s Alberta Investment Management Corporation (AIMCo) said on Tuesday it reached an agreement with Brazilian private equity firm IG4 Capital Investimentos SA to inject 400 million reais ($107.26 million) in the Brazilian water and sewage service holding company Iguá Saneamento SA for an undisclosed stake.

The proceeds, according to the statement, will be used to finance capital expenditures in Iguá’s 18 existing concessions and public-private partnerships in five Brazilian states.

IG4 Capital has been Iguá’s controlling shareholder since July 2017 and will maintain that position after the capital injection, although the companies did not provide specifics about the size of the stake.

The sanitation company was acquired from the group that controls Galvão Engenharia SA, one of Brazil’s construction conglomerates which forced to sell assets after being targeted in the country’s largest corruption probe.

Reporting by Carolina Mandl; Editing by Leslie Adler

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