HAMILTON, Bermuda - Brookfield Infrastructure (TSX:T.BIP.UN
, Stock Forum
) says it is investing $490 million to increase its ownership stake in Brazilian toll road company Arteris S.A. (OTO:OBSJY
, Stock Forum
) to 31 per cent.
Arteris is one of the South American country's largest toll road operators, with more than 3,200 kilometres of roads in states that account for about 65 per cent of Brazil's gross domestic product and home to nearly two-thirds of the country's 70 million vehicles.
Chief executive Sam Pollock said Arteris' performance has exceeded Brookfield's expectations after one year of ownership, with toll revenues increasing by more than 10 per cent from the prior year.
The concession benefits from increases in traffic and rates that are indexed to inflation.
In October 2012, a joint venture formed between a Brookfield Infrastructure consortium and Abertis Infraestructuras, S.A. purchased 60 per cent of Arteris. The new investment stems from a mandatory tender offer that the joint venture was required to make to the holders of the 40 per cent of Arteris not owned by the joint venture.
Brookfield owns stakes in two urban and nine interurban toll roads in Chile and Brazil. It also owns and operates utilities, transport and energy assets in North and South America, Australasia and Europe.
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