Varig Sells Logistics Unit

Financially-troubled Brazilian airline Varig has agreed to sell its logistics unit, VarigLog, to US private equity firm Matlin Patterson. VarigLog was valued at $100 million, but after liabilities Patterson will pay $38 million in cash for 95 percent of the company. The remaining 5 percent belongs to Aerus, a local pension fund of airline employees. The deal, which must be authorized by the Rio de Janeiro-based court handling Varig’s debt restructuring process, is expected to be concluded by the end of August.