(Dow Jones) July 16, 2010 – Brazil’s Laep Investments Ltd., a fund that controls local dairy company Parmalat Brasil, said it entered in an agreement to receive a capital injection of up to 75 million BRL ($42.3 m) from GEM Global Yield Fund Limited.

The capital injection will be made through a subscription of Laep’s shares by GEM. However, the company did not disclose the number of shares to be subscribed.

Laep said it will use the proceeds to finance investments and acquisitions.

If concluded, the capital injection in the Brazilian company will be the second made by GEM.

In June, GEM injected BRL126 million in Laep, through the subscription of 109.7 million shares.

GEM, founded in 1991, is a $3.4 billion alternative investment group that manages a diverse set of investment vehicles focused on emerging markets across the world, according to the company’s Web site.

Laep acquired control of Parmalat Brasil in May 2006, while the company was in a restructuring process in local courts following the 2003 collapse of Italy’s Parmalat SpA.

By Rogerio Jelmayer