Brazil Seeks USD$1.4 Bln From Airport Stake Sale - Report

Brazilian airport authority Infraero plans to raise BRR5 billion reais (USD$1.4 billion) by selling part of its minority stakes in five airports as early as the end of this year, according to a media report

According to a Reuters report, a person who requested anonymity said Infraero will transfer to a subsidiary the 49-percent stakes it owns in five airports opened in recent years to private concessions.

Infraero is still considering the idea of listing the subsidiary, as it has been discussed for a few years, but the person said there is now a clear preference for selling up to 25 percent of the unit to a strategic partner.

The airports are Rio de Janeiro's Galeao, Sao Paulo's Guarulhos, Campinas's Viracopos, Belo Horizonte's Confins and the main airport in the capital Brasilia, the source said.

Strained public finances are forcing Brazil's federal government and state-controlled companies such as Infraero to put assets up for sale, shopping them to investors on an international road show scheduled for mid-July. Asset sales could help plug a record budget deficit expected for this year.

Foreign pension funds and banks including Citigroup Inc and Bank of America Merrill Lynch had showed interest in the asset, the person added.

A spokesman for Brazil's civil aviation secretary declined to comment on the matter.