Brazil’s BR Distribuidora launches share offering to sell Petrobras stake

RIO DE JANEIRO, BRAZIL – Brazilian fuel retailer BR Distribuidora launched a share offering on Thursday, June 17, in which state-controlled oil company Petrobras SA will sell an R$11.5 billion (US$2.3 billion) stake in the company, according to a securities filing.

The offering will be priced on June 30, and managed by Bank of America Corp, Citigroup Global Markets, Goldman Sachs Group Inc, Itaú BBA and JP Morgan Chase & Co , along with Morgan Stanley and XP Investimentos , it said.

Petrobras is selling the assets to raise money and reduce its debt burden.

The oil company said last Friday it had informed BR Distribuidora of its plan to sell its remaining 37.5% stake in the firm in a follow-on public offering. “This operation is in line with the optimization of the portfolio and the improvement of the company’s capital allocation, aiming at generating value for its shareholders,” Petrobras said then in a filing.

BR Distribuidora is Brazil’s leading fuel distribution company and was privatized almost two years ago through a share offering.

Source: Reuters