Vale SA has concluded its previously announced sale of a 26.5% stake in VLI S.A. to an investment fund managed by Brookfield Asset Management Inc. for R$2.0 billion or US $853 million.

VLI, Valor Logística Integrada, provides integrated logistics solutions through 9,742 km of railroads (FCA, FNS, EFVM and EFC), five inland terminals with a total storage capacity of 509,320 tons and three maritime terminals and ports operations.

In September 2013, Vale agreed to transfer 20% of VLI to Mitsui & Co., Ltd. for R$1.5 billion or US $677 million, and 15.9% to Fundo de Garantia por Tempo de Serviço–FGTS, an investment fund of a Brazilian employee benefits fund, for R$1.2 billion or US $538 million. In December 2013, Vale agreed to sell an additional 26.5% stake in VLI to Brookfield.

Each of these transactions was subject to conditions precedent, including, in the case of the transaction with Brookfield, approval by the antitrust authorities.

Mitsui and FI-FGTS transaction closed in April 2014, following the approval of Conselho Administrativo de Defesa Econômica (CADE) in March 2014.

Vale now holds 37.6% of VLI’s total share capital following the sale.

Source: Canadian Private Equity

Related link: Brazil's Manabi Signs Logistics Pact with Vale for Iron Ore (2014-08-26)