Temasek Holdings Pte, Advent International Corp. and at least three other investors are in talks to buy a controlling stake in STP - Servicos & Tecnologia de Pagamentos SA, a Brazilian electronic-toll-collection company, two people familiar with the negotiations said.
STP, based in Osasco, hired Banco BTG Pactual SA to sell an undisclosed stake to fund expansion, said one of the people, who declined to be identified because the transaction is private.
CCR SA, Brazil’s largest toll-road operator, and CCBR Catel Construcoes do Brasil Ltda are STP’s biggest shareholders, with a combined 73 percent stake, according to data on STP’s website. The company sells Sem Parar and Via Facil tags, which car owners use to pay tolls and parking fees.
The shareholders valued the company at $1 billion, or 10 times its earnings before interest, taxes, depreciation and amortization, compared with the typical average of seven times that gauge for companies sold in Brazil, said one of the people. General Atlantic LLC, Itau Unibanco Holding SA and Cielo SA are also holding talks with STP, said the person.
Brazil’s economic expansion is boosting the number of vehicles traveling the nation’s toll roads. Such travel rose 4.1 percent last month, Brazil’s Association of Highway Concessionaires said on Nov. 10. The country is expected to grow 3.2 percent this year and 3.5 percent in 2012, according to the central bank’s weekly survey of about 100 economists published today.
STP said it’s been evaluating offers and hasn’t made a decision, according to an e-mailed statement. BTG, Temasek, Advent, Cielo and Itau declined to comment in e-mailed statements. Pat Hedley, a spokeswoman for General Atlantic, said the company’s policy is not to comment on investments it may or may not be considering.
The Valor Economico newspaper said on Aug. 1 that STP may sell a stake to private-equity funds.
CCR fell 0.6 percent to 46.55 reais in Sao Paulo trading at 1:19 p.m. New York time, compared with a drop of 0.4 percent for Brazil’s benchmark Bovespa index.