Andrade Gutierrez’s Bonds Jump on CCR Stake Sale

Brazil’s infrastructure company CCR, controlled by the conglomerate construction group Andrade Gutierrez, Mover and Soares Penido, is expected to introduce changes to its shareholder structure as the aftermath of the Lava Jato corruption probe continues to affect the sector. Andrade Gutierrez announced that local private equity fund IG4 Capital offered BRL 4.6bn ($890mn) to acquire its 14.86% stake in CCR. Mover holds a 14.9% stake and Soares Penido 15.1%. Andrade Gutierrez and Mover, formerly Camargo Corrêa, were significantly involved in the Lava Jato scandal, which severely affected the groups’ income in recent years.

“Today we saw a change in the profile of infrastructure operators. This wave started with small firms that took over participation of the companies that were involved in Lava Jato. Large international companies and investment funds took over their role, as these represent companies with more demanding governance rules, ” said Rodrigo de Pinho Bertoccelli, a lawyer specializing in infrastructure at Felsberg Advogados.”The entry of a fund such as IG4 Capital will give CCR even more oxygen to continue advancing in new concessions, because it is a more solid shareholder in financial conditions than the construction companies that make up the controlling block,” said Carlos Daltozo, head of Equity analysis from Eleven Financial Research.

Andrade Gutierrez’s USD bonds jumped on the news – its 9.5% 2024s traded 10.21 points higher to 78.21, yielding 17.9% and its 11% 2021s up 3.46 points to 60 cents on the dollar.

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