Deals

Shares in Brazil's CCR soar after CDPQ reported seeking a stake

2 minute read

The Caisse de depot et placement du Quebec (CDP) building is seen in Montreal, February 26, 2014. REUTERS/Christinne Muschi

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SAO PAULO, Dec 6 (Reuters) - Shares in Brazilian infrastructure company CCR SA (CCRO3.SA) soared on Monday after a newspaper said Canadian pension fund Caisse de depot et placement du Quebec (CDPDA.UL) is looking to buy conglomerate Andrade Gutierrez's stake in the firm.

O Globo columnist Lauro Jardim reported on Sunday that CDPQ mandated two banks - Bank of America and Santander - for the deal, adding that the pension fund also aims to potentially take the company private in the future.

Shares in CCR were up 6.4% to 15.10 reais in early afternoon trading in Sao Paulo, outperforming the broader Bovespa index (.BVSP), which rose 2%.

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Analysts at XP Investimentos said the deal would be positive for CCR, as it would eliminate selling pressure on its shares and enhance corporate governance, noting that a construction company would be replaced by a financial player as shareholder.

XP added that the possibility of CDPQ taking CCR private could represent an upside to minority shareholders due to tag-along rights.

Last month, Andrade Gutierrez canceled a deal with Brazilian asset manager IG4 to sell its 14.86% stake in CCR, saying certain preconditions were not met.

CCR did not immediately respond to Reuters request for comments.

Andrade Gutierrez and CDPQ declined to comment.

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

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