Transaction|December 23, 2013
Brookfield Infrastructure to invest in South American Transportation Infrastructure
Torys acted as counsel to Brookfield Infrastructure with a team that included Neville Jugnauth and Mike Pedlow.
On December 23, 2013, Brookfield Infrastructure (Brookfield) signed agreements to invest alongside institutional investors to acquire an approximate 27% interest in VLI S.A. (VLI), one of Brazil's largest rail and port logistics businesses, from Vale S.A. (Vale), for R$2 billion (approximately US$850 million), of which Brookfield will invest approximately US$350 million.
VLI is one of the largest logistics operators in Brazil, providing transport of general cargo in Brazil through an integrated system of railroads, ports and inland terminals.
Brookfield Infrastructure operates high quality, long-life assets that generate stable cash flows, require relatively minimal maintenance capital expenditures and, by virtue of barriers to entry and other characteristics, tend to appreciate in value over time. Its current business consists of the ownership and operation of premier utilities, transport, energy, and timber assets in North and South America, Australasia and Europe. It also seeks acquisition opportunities in other infrastructure sectors with similar attributes.
Vale is a Brazilian multinational diversified metals and mining corporation and one of the largest logistics operators in Brazil.
Further information can be found on Brookfield's website.
VLI is one of the largest logistics operators in Brazil, providing transport of general cargo in Brazil through an integrated system of railroads, ports and inland terminals.
Brookfield Infrastructure operates high quality, long-life assets that generate stable cash flows, require relatively minimal maintenance capital expenditures and, by virtue of barriers to entry and other characteristics, tend to appreciate in value over time. Its current business consists of the ownership and operation of premier utilities, transport, energy, and timber assets in North and South America, Australasia and Europe. It also seeks acquisition opportunities in other infrastructure sectors with similar attributes.
Vale is a Brazilian multinational diversified metals and mining corporation and one of the largest logistics operators in Brazil.
Further information can be found on Brookfield's website.