Government of Singapore Investment Corporation Pte Ltd (GIC), the world's fourth-largest sovereign wealth fund, is in talks with Brazilian investment bank Banco BTG Pactual SA (BTG Pactual) to buy a 16-per cent stake in it, according to a report in Brazil's Exame magazine on Friday, citing people familiar with the negotiations.
The island-nation's investment arm is already the biggest shareholder in Switzerland's largest bank UBS AG, and also a shareholder in the US banking giant Citigroup Inc.
Neither GIC nor BTG Pascal was available for any comments on the matter.
The talks with a group of investors led by GIC may be concluded in about a month, according to the source. The value of the transaction is not yet known, which according to analysts, could be in the range of $2.4 billion.
It is believed that BTG Pactual's proposed initial public offering will not be affected by the deal.
Brazil-based BTG Pactual is the largest independent investment bank in Latin America with over 25 years of the experience. Its products and services include investment banking, asset management, and wealth management.