Shares in the Brazilian CCR rise after CDPQ announced it is looking to get a stake


The Caisse depot et Placement du Quebec (CDP) building can be seen in Montreal, February 26, 2014. REUTERS / Christinne Muschi

Register now for FREE unlimited access to reuters.com

to register

SAO PAULO, Dec 6 (Reuters) – Shares in Brazilian infrastructure company CCR SA (CCRO3.SA) soared Monday after a newspaper announced that Canadian pension fund Caisse de depot et Placement du Quebec (CDPDA. UL) the acquisition of the Andrade Gutierrez conglomerate seeks stake in the company.

O Globo columnist Lauro Jardim reported Sunday that CDPQ had hired two banks – Bank of America and Santander – to handle the transaction.

CCR shares rose 6.4% to 15.10 reais in early afternoon trade in Sao Paulo, outperforming the broader Bovespa Index (.BVSP), which was up 2%.

Register now for FREE unlimited access to reuters.com

to register

Analysts at XP Investimentos said the deal would be positive for CCR as it would remove selling pressure on its shares and improve corporate governance, noting that a financial operator would replace a construction company as a shareholder.

XP added that the possibility of CDPQ privatizing CCR could provide an advantage to minority shareholders through tag-along rights.

Last month Andrade Gutierrez announced a deal with Brazilian asset manager IG4 to sell its 14.86% stake in CCR on the grounds that certain conditions were not met.

CCR did not immediately respond to Reuters’ request for comment.

Andrade Gutierrez and CDPQ declined to comment.

Register now for FREE unlimited access to reuters.com

to register

Reporting by Peter Frontini and Gabriel Araujo; Edited by Ed Osmond and Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.


Comments are closed.