By Brazil Stock Guide – Mubadala Capital, the investment arm of Abu Dhabi’s sovereign wealth fund, is set to take control of Lamsa, the concessionaire operating Rio de Janeiro’s Linha Amarela, after converting R$340 million (US$61.5 million) of Invepar debt into equity. The deal would give Mubadala roughly 60% of the asset, while Invepar would keep 40%.
The Linha Amarela is a 25-kilometer (15.5-mile) expressway that links Rio’s North Zone to Barra da Tijuca, serving as a strategic urban mobility corridor. Opened in 1997 and operated by Lamsa since then, the concession includes toll collection and runs until 2037.
The transaction follows a debt-restructuring model Mubadala has previously used in other Invepar assets.
According to O Globo, a person close to the talks said the final percentage is still under discussion, but the conversion is expected to fully settle Invepar’s debt with Mubadala. The firm declined to comment, said O Globo.
Restructuring implications
The agreement comes just after Invepar ended a six-year legal battle with Rio’s city hall, which cut the toll from R$4 to R$3.80 (US$0.72) and confirmed the concession until 2037. The settlement removed one of the main obstacles to a broader financial restructuring, as Invepar faced creditor pressure and the risk of court-supervised restructuring proceedings.
Even so, the company still owes R$865.8 million (US$157 million) to banks that guaranteed Via 040’s financing with BNDES. The Banco do Brasil (B3: BBAS3), the Bradesco (B3: BBDC4), the Itaú (B3: ITUB4) and the BDMG are all awaiting a deal.
Linha Amarela, one of Invepar’s last remaining assets
Lamsa is among Invepar’s last remaining assets, alongside a stake in ViaRio, which runs the Transolímpica expressway, and a controlling interest in the operator of São Paulo’s Guarulhos International Airport, Brazil’s busiest. Handing over control of the Linha Amarela would resolve Invepar’s clash with Mubadala, its largest creditor, which had demanded early repayment of the debt.
The negotiations are being led by investment bank BR Partners (B3: BRBI11). Pension funds Previ, Petros and Funcef, which are both shareholders and creditors of Invepar, are also involved.
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