January 10, 2020 / 3:53 PM / 14 days ago

Brazil's state-owned lender Caixa seeks further asset sales: CEO

SAO PAULO (Reuters) - Brazilian state-owned lender Caixa Economica Federal intends to sell more stakes in companies held by a fund it manages, such as power holding Alupar Investimento SA (ALUP11.SA), sanitation firm BRK Ambiental and VLI Logistica, Chief Executive Officer Pedro Guimaraes told Reuters.

Last year, Caixa tried to sell a stake in Alupar owned by a workers severance fund known as FGTS twice, but the fund’s board rejected the proposal.

Guimaraes said he intends to demonstrate in the coming months that the fund has already obtained more than 200% return on Alupar and could divest from its stake.

The CEO plans to use proceeds from FGTS asset sales to fund new infrastructure projects.

Last year, FGTS sold its stake in Banco do Brasil SA (BBAS3.SA) in a share offering that raised nearly 6 billion reais ($1.48 billion).

Reporting by Aluisio Alves in Sao Paulo; Writing by Carolina Mandl; Editing by Steve Orlofsky

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