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Vinci Partners to Divest 50.1% Stake in Brazil’s Linhas do Energia do Sertao Transmissora

23 November 2021

Vinci Partners agreed to sell its 50.1% stake in Linhas de Energia do Sertão Transmissora, a Brazilian power transmission concessionaire, for an undisclosed amount.

(Globe Newswire) — Vinci Partners Investments Ltd. (NASDAQ: VINP) (“Vinci Partners”, “we”, “us” or “our”), the controlling company of a leading alternative investment platform in Brazil, announced today that Vinci Infra Transmissão Fundo de Investimento em Participações em Infraestrutura, alongside its co-investment vehicles (“the Fund” or “FIP Infra Transmissão”), the family of funds managed by Vinci Partners’ Infrastructure strategy, have entered into a definitive agreement for the sale of its 50.1% stake in Linhas de Energia do Sertão Transmissora S.A. (“Lest”or “the Company”), a power transmission concessionaire. The transaction is subject to customary closing conditions and is expected to close until year-end 2021.

Lest is a special purpose company that explores the concession of public electricity transmission services for the implementation, operation, and maintenance of two transmission line projects in the Northeast region of Brazil.

FIP Infra Transmissão acquired control of Lest through a public concession auction in 2017 and has since worked closely with the Company’s management team, leading asset implementation and improving its debt structure. The Fund had partially realized its investment in Lest in 2019, reaching fully realized status with this transaction. FIP Infra Transmissão has one remaining investment in its portfolio, Água Vermelha Transmissora, or AVT, a thirty-year concession for the implementation and operation of a static compensator project in the state of Minas Gerais.

José Guilherme Souza, partner and Head of Infrastructure for Vinci Partners, said, “Our divestment in Lest builds upon the Infrastructure team’s extensive track record in power transmission projects, by correctly identifying risks and opportunities in the initial phase of a public auction, together with an effective project management from start to end.”