China’s HNA closing in on buying stake in Brazil’s second busiest international airport

China’s HNA Airport Holding Group Co Ltd is close to buying out the stake that engineering conglomerate Odebrecht SA has in Brazil’s second-busiest international airport, a person briefed on the matter said on Monday, partly solving an impasse with a government agency over licensing rights.

The Chinese company, which is part of HNA Group Co Ltd, is currently conducting due diligence proceedings that could lead to the purchase of the approximately 30 per cent stake that Odebrecht has in the Rio de Janeiro international airport, commonly known as Galeão, said the person.

As a condition to a deal, Odebrecht and partner Changi Airports International Pte Ltd of Singapore will pour 900 million reais (US$290 million) into the investment vehicle managing Galeão, representing payment of past-due operating licensing fees, the person said. The payment is expected to take place as early as this week, the person added.

Odebrecht and Changi have a combined 51 per cent of Galeão, with Brazil’s civil aviation infrastructure authority Infraero the remainder. The consortium failed to pay the licensing instalment last year, citing a cash crunch amid Brazil’s harshest recession on record.

Odebrecht declined to comment. HNA and Changi press representatives did not immediately respond to e-mails seeking comment.

The person, who requested anonymity because terms of the transaction remain private, declined to elaborate on a potential timetable or a value for the deal.