Brazil's Ultrapar increases stake in logistics firm Hidrovias

Reuters · 03/25 10:44
Brazil's Ultrapar increases stake in logistics firm Hidrovias

- Brazilian conglomerate Ultrapar UGPA3.SA has increased its stake in logistics firm Hidrovias do Brasil HBSA3.SA, it said late on Sunday, as part of a strategy to expand its footprint in businesses exposed to Brazil's agricultural sector.

Ultrapar agreed to buy a 16.88% stake in Hidrovias from Patria Investments PAX.O and Temasek-controlled investment fund Sommerville, it said in a securities filing, raising its stake to 21.87%.

The deal was priced at 3.98 reais per share, an 11.8% premium over its Friday closing, valuing the transaction at 510.9 million reais ($102 million).

"Ultrapar plans to be a strategic and long-term reference shareholder of Hidrovias, supporting its growth, governance and management model," the conglomerate said.

"Hidrovias operates in a high-growth sector, considering the deficit of logistics infrastructure and the growing expansion of agribusiness, with complementary and synergistic operations to Ultrapar's portfolio."

($1 = 5.0021 reais)

(Reporting by Gabriel Araujo; editing by Jason Neely)

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