Invepar Buys Metro do Rio

Brazilian infrastructure investment firm Invepar is acquiring a majority stake in Rio de Janeiro’s subway system for $445m, the companies say in a letter to the CVM. As part of the deal, Invepar is buying 61.8m shares that Citigroup Venture Capital and Brazil fund IIFIP own in Oeste Participacoes, which is one of the companies that owns the subway system. This represents 96.22% of Oeste’s shares. Invepar is also buying 15.8m shares, representing a 15% stake in the subway system, from Vale’s pension fund Valia. All the shares will be transferred to Invepar subsidiary Megapar. Megapar has the right to acquire the remaining shares of Oeste and says it will eventually do, but not before 2010.