SAO PAULO, June 9 (Reuters) - Brazilian industrial conglomerate Camargo Correa is looking to sell a stake in cement maker InterCement for up to 3.6 billion reais ($1.2 billion) in order to make new overseas investments, according to a report in newspaper Folha de S.Paulo.
Camargo Correa is looking to sell between 10 percent and 18 percent of InterCement for between 2 billion and 3.6 billion reais, the newspaper reported on Tuesday, without saying how it obtained the information.
Camargo Correa representatives could not be reached for comment.
The industrial conglomerate is one of several in Brazil with executives accused of paying bribes for contracts with state-run oil company Petroleo Brasileiro SA, known as Petrobras, threatening its access to public works contracts and driving up borrowing costs.
Two Camargo Correa executives have pled guilty and Fitch Ratings put the company’s credit rating on negative watch, citing the ongoing federal investigation that had limited access to financing and temporarily banned bids on Petrobras projects.
InterCement, which grew with Camargo Correa’s acquisition of Cimpor in 2012, is a major cement producer in Portugal, Argentina, Mozambique and Brazil.
Folha reported that Camargo Correa’s hefty 8.2 billion reais of debt had led the company to seek a minority partner in order to take advantage of opportunities to grow in Egypt, Mozambique and Paraguay.
The investment banking units of Banco Bradesco SA and Itau Unibanco Holding SA were hired for the deal, according to Folha.
$1 = 3.1 Brazilian reais Reporting by Brad Haynes; Editing by Andrew Hay