September 12, 2017 / 12:58 PM / 10 months ago

Brazil taps BNDES to design model for sale of lottery unit

SAO PAULO, Sept 12 (Reuters) - The Brazilian government has tapped state development bank BNDES to decide how control of a lottery unit will be sold to investors, as President Michel Temer seeks to reduce state involvement in the economy and cut a widening budget gap.

According to the Tuesday edition of the government’s gazette, BNDES will be tasked with preparing all financial and legal aspects of an auction of Loteria Instantânea Exclusiva Lotex, a lottery unit currently overseen by state-controlled lender Caixa Econômica Federal SA.

While the gazette did not specify the value and terms of a potential Lotex sale, it said BNDES also will be in charge of hiring an institution responsible for organizing the auction. The government has been considering selling Lotex for at least a couple of years but Temer made the plan official last month.

A government council focused on state asset sales approved on Aug. 23 a plan to divest stakes in some of the country’s busiest airports as well as oil exploration, highway and power dam licensing rights.

The government estimates buyers of licensing rights would be required to invest about 44 billion reais ($14.1 billion) to win and operate the assets.

$1 = 3.1185 reais Reporting by Guillermo Parra-Bernal and Gabriela Mello; Editing by Bill Trott

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