CPPIB Exits Ultrapar in Massive R$1.3 Billion Block Trade

The Canada Pension Plan Investment Board (CPPIB) has completely exited its equity position in Brazilian holding company Ultrapar Participações S.A. (UGPA3). The pension fund liquidated its remaining 4% stake by selling 44 million shares in a massive block trade on the B3 exchange, raising approximately R$1.3 billion ($240 million). The transaction, coordinated by Bank of America, was priced at R$29.40 per share, representing a 4.95% discount to the previous day's closing price.

The divestment marks the culmination of an investment that began in 2021, when CPPIB first built its position at an average price of around R$15 per share. Since then, Ultrapar shares have virtually doubled, driven by expanding operating margins and robust financial results. The stock has surged 80% over the last 12 months and is up 42% in 2026 alone, hitting an eight-year high just prior to the block trade. Despite the massive volume, demand for the block trade was highly diversified, split evenly between local and international institutional investors.

Market sources indicate the exit is part of a broader, tactical portfolio rotation by CPPIB. The Canadian fund has been actively reevaluating its public equity exposure in Brazil, having recently exited or reduced stakes in Azzas, GPS, and Allos. Capital from these sales is being earmarked for reallocation into Brazilian infrastructure and real estate assets, rather than signaling a retreat from the country. CPPIB still maintains major public equity holdings in Brazil, including a 4.5% stake in Equatorial and 12.1% in SmartFit.

The block trade comes amid broader gains in Brazilian markets. On Wednesday, the benchmark Ibovespa (IBOV) traded up 0.51% at 176,641.10 points. Among other major index constituents, Petrobras (PETR4) remained flat at R$40.66, Vale (VALE3) rose 1.59% to R$74.01, and Itaú Unibanco (ITUB4) ticked up 0.25% to R$43.63.