LLX: Competitive Advantages of Acu Superport (Brazil)

Yesterday, during a conference call with market analyst, the CEO of LLX, Marcus Berto, stated that the signing of the Commitment with EIG Group confirms the competitive advantages offered by Açu Superport and the venture’s capacity to attract global investors interested in infrastructure ventures.

The Company Announcement published yesterday stated that the commitment stipulates the investment in the company of R$ 1.3 billion via a private capital increase. The transaction is still subject to precedent conditions, such as signing the permanent contracts, the applicable regulatory and corporate approvals and completion of a due diligence by EIG Group.

“Since we published the Company Announcement we have received extremely positive feedback from clients in the market in a clear sign that this is a very promising time for LLX and everyone involved”, emphasized Marcus Berto.

When the transaction is concluded EIG Group will become the new controlling shareholder of LLX. The current controlling shareholder shall stand down from the board of directors but will continue to be a material shareholder and has the right to appoint a member to the LLX board of directors.

The funds from this capital increase and the existing credit facilities shall provide LLX the funds necessary to implement the Company’s investment plan to build Açu Superport and to bolster its capital structure.

Açu Superport is located in São João da Barra, in northern Rio de Janeiro state. The venture will be able to handle up to 350 million tons of cargo a year, ranking it amongst the world’s largest ports. The Superport has two terminals (TX1 and TX2), which will jointly offer up to 47 berths and a 17-km pier.

TX1, the offshore terminal with a 3-km pier, approach channel with a depth of up to 26 meters, breakwater and up to nine berths. The terminal will be able to handle up to 100 million metric tons of iron ore a year and up to 1.2 million barrels of oil a day (bpd), in addition to transfers, storage and blending activities, amongst others. The bridge and two iron ore handling berths, with a depth of 21 meters, are now completed.

TX2, the onshore terminal, will land and ship the goods of a range of industries within the Industrial Complex, including offshore support, flexible industries, pig iron, slag and granite. The channel is currently more than 6.2 km long, 300 meters wide and 12.5 meters deep. The construction of the breakwater will use 42 concrete blocks built by the Kugira, Europe’s largest floating dyke, which is in Brazil for the first time.

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Press Release, August 16, 2013