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Brazil adds sale of Caixa's lottery unit to asset sale program
January 29, 2016 / 11:05 AM / in 2 years

Brazil adds sale of Caixa's lottery unit to asset sale program

BRASILIA/SAO PAULO, Jan 29 (Reuters) - The Brazilian government, scrambling to raise cash to plug a swelling budget deficit, included one lottery unit of state-controlled Caixa Econômica Federal, Lotex, into a wide state asset sale program.

According to a decree in Friday’s official gazette, President Dilma Rousseff’s administration also included Caixa Instantânea SA, a wholly owned subsidiary of lender Caixa, in the so-called National Privatization Plan.

Under terms of the decree, which was signed by Rousseff and Finance Minister Nelson Barbosa, state bank Banco do Brasil SA will conduct the process. Banco do Brasil will hire consultancy firms to advise both the government and Caixa on the sale, as well as prepare the necessary documentation that will be surrendered to government auditors through the process.

Lottery-related transactions at Brasilia-based Caixa, the nation’s largest mortgage lender, rose 1.5 percent to 663 million reais ($163 million) in the third quarter, the latest data available. The bank has more than 13,000 lottery slots, many of which are operated by third-parties, across Brazil.

$1 = 4.0701 Brazilian reais Reporting by Silvio Cascione and Guillermo Parra-Bernal; Editing by Mark Potter

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