The origin of the resources to purchase the concession has not yet been defined, but it will certainly not be public resources.
At the hearing held on Tuesday morning (September 26), at the headquarters of EY in Rio de Janeiro, it was clear that Caixa could participate in the bidding process individually or as part of a consortium, and that the Lottery network will only sell the products if the winner has an agreement with Caixa and/or Lotéricos.
It is worth mentioning that BNDES has established among its requirements that companies wishing to compete in the auction will require a proof of experience in the operation of the instant lottery service with gross monthly revenue equal to or superior to R$ 100 million (USD 31.5m) and participation in an enterprise whose value total investment is equal to or superior to R$ 175 million (USD 55m).
Caixa does not meet the requested revenue and that is why it would require a partner to join and thus be able to present itself to the December auction. This
At the same time, this company, still unknown, would benefit from the knowledge of the Brazilian market and the national lottery network with more than 13,000 points of sale, which Caixa currently has. Of course, this number should multiply in the future to generate more points of sale that allow to recover the investment and generate profits.
London Road Show
The Secretary for Economic Monitoring of the Ministry of Finance (MF /
The event was attended by the Brazilian Ambassador to the United Kingdom, Eduardo dos Santos, and also with the presence of seven potential investors with their respective advisors. This is the first of a series of meetings that includes the cities of London, Las Vegas, Rio de Janeiro and Sao Paulo.
According to the secretary Almeida, "this roadshow takes place at an important moment, since the macroeconomic scenario, coupled with the regulatory framework of the instant lottery, presents good prospects for the lottery industry in Brazil."
The secretary also recalled that in one year the government promoted important changes in the economy that changed the scenario of growth, inflation and interest rates.
"In early 2016, we were in a country that was experiencing a severe recession, country risk (CDS 5 years) above 500 basis points, inflation above 6.5% per annum and interest of 14.25%. Today, the market expects growth close to 1% this year and between 2% and 3% in the coming years, country risk has already fallen to 200 basis points, expected inflation for this year is 3% and about 4% up to 2020, and the financial market projects single-digit interest rates in Brazil until 2025. "
Source: GMB
