By Brazil Stock Guide – TPI – Triunfo Participações e Investimentos SA (TPIS3 BZ) and its Concebra unit said Brazil’s federal audit court approved the renegotiation of the Rota do Pequi concession agreement.
The settlement calls for a competitive process to transfer control of Concebra. If the process fails, the concession contract will be assigned to a new special-purpose company. Concebra must leave the toll-road section by Dec. 16.
Triunfo will inject as much as 308.3 million reais into Concebra, although the contribution may fall to 168.9 million reais depending on negotiations with state development bank BNDES.
The company will also assume 210.6 million reais in active administrative proceedings, 266.3 million reais in obligations to be registered as federal debt and a separate 30 million-real regulatory liability.
Total financial obligations may reach 815.2 million reais. The agreement also requires Concebra to fully write off a financial asset valued at about 953 million reais, affecting Triunfo’s earnings and shareholders’ equity.
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