Brazil's Galvão one step from selling waterworks arm CAB Ambiental

Brazilian engineering conglomerate Grupo Galvão is one step away from selling its waterworks subsidiary CAB Ambiental to a consortium acquiring funding from Asian Infrastructure Investment Bank (AIIB).

According to the conglomerate, it is only waiting for the green light from BNDESpar, investment arm of national development bank BNDES, which owns 33.4% of CAB Ambiental, local waterworks portal Saneamento Basico reported.

BNDESpar has the right to either acquire the company, or to partner up with the new consortium, the report said, adding that Grupo Galvão claims to be negotiating with four distinctive groups overall.

CAB Ambiental operates potable water supply and sewerage service concessions and public-private partnerships in the states of São Paulo, Mato Grosso do Sul, Paraná, Santa Catarina and Alagoas. It currently holds 18 contracts serving a total of 6.54mn residents for a combined sum of 2.66bn reais.

Grupo Galvão is managed by the private capital holding company Galvão Participações, which has five subsidiaries: Galvão Engenharia, CAB Ambiental, Galvão Óleo e Gás Participações, Galvão Rodovias BR-153, and Galvão Finanças.

Both Galvão Participações and Galvão Engenharia filed for bankruptcy protection earlier this year.