June 10, 2017 / 2:32 PM / a year ago

Brazil court clears Invepar stake sale to Mubadala -sources

SAO PAULO, June 10 (Reuters) - A Brazilian court ruling clearing the sale of a minority stake that creditors of OAS SA have in a local infrastructure company have boosted chances of striking a deal with bidder Mubadala Development Co PJSC , two people with knowledge of the situation said on Saturday.

The Superior Justice Tribunal, Brazil’s top appeals court, rejected on Friday claims by some OAS creditors that the sale of a 24.4 percent stake in Invepar SA be stopped. The decision allowed creditors to convene an assembly on June 22 to decide how to take ownership of the stake, the sources said.

According to the sources, who requested anonymity to discuss the deal, the court’s decision will speed up talks between the creditors and Mubadala.

Under preliminary terms of the deal, Mubadala proposed to inject fresh capital into Invepar to kick-start projects and cut debt, sources with direct knowledge of the matter told Reuters in February.

A sale, which could be announced at some point during the third quarter, would trigger a reworking of the shareholder accord between OAS and the three Brazilian pension funds that own a combined 75.6 percent of Invepar, the sources said.

The Reuters report in February said Mubadala would pump fresh capital into Invepar to rework that accord, diluting the stakes that Previ Caixa de Previdência do Banco do Brasil SA , Petros Fundação Petrobras SA and Funcef Fundação have in Invepar.

OAS declined to comment. Efforts to reach a Mubadala spokesman in Abu Dhabi after working hours were unsuccessful. Some of the OAS creditors that won the right to the Invepar stake declined to comment.

Formally known as Investimentos & Participacoes em Infraestrutura SA, Invepar operates toll road, airport and urban mobility licenses, including São Paulo’s GRU international airport and the MetrôRio and VLT Carioca urban transport projects in Rio de Janeiro.

A new partner would help Invepar cut debt and jumpstart investments that snagged amid Brazil’s harshest recession ever, surging borrowing costs and the involvement of OAS in the nation’s worst corruption scandal.

The creditor group wants to sell the stake for a value “north of” 2.2 billion reais ($668 million), the sources said. The creditors took control of the stake in exchange for their redemption of 1.25 billion reais worth of OAS debt.

$1 = 3.2959 reais Reporting by Guillermo Parra-Bernal; Editing by Marguerita Choy

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