Petrobras to sell 37.5% of BR shares; proceeds could reach RS$10 billion

RIO DE JANEIRO, BRAZIL – Petrobras has started the process of selling its remaining shares in BR Distribuidora. The state-owned company currently holds 37.50% of the country’s largest fuel distributor capital stock.

The initial plan was for the operation to be held earlier this year, but it was deferred due to the change in command of the state-owned company.

In a statement sent to the Securities and Exchange Commission (CVM), the state-owned company said it sent a letter to BR requesting cooperation to implement the secondary public offering (follow-on) for the sale of shares.

“This communication should not be considered as an announcement of an offer in Brazil, in the United States or in any other jurisdiction,” added the state-owned company, highlighting that the operation aims to optimize its asset portfolio.

In a separate statement, BR Distribuidora confirmed having received the letter with Petrobras’ request, reiterating that Friday’s announcement is “merely informative.”

Petrobras’ intention to completely exit BR’s capital is already known and is part of the company’s strategy to reduce its debt and focus on oil exploration and production activities in deep and ultra-deep waters, essentially the pre-salt fields.

In May, BR president Wilson Ferreira Jr. said in a conference with analysts and investors that he would meet with Petrobras president Joaquim Silva e Luna, and that one of the topics of the talks between the two would be the sale of shares by the oil company.

Expectations

According to a source, the initial plan was for the operation to be held earlier this year, but the change in the command of the state company, with the exit of Roberto Castello Branco and the arrival of Joaquim Silva e Luna, delayed the process. The market expectation is that the operation could generate between R$8 (US$1.5) billion and R$10 billion to the state-owned company’s coffers.

In 2019, the state-owned company sold a 33.7% stake in BR, generating just over R$9 billion. The sale of BR shares is part of the company’s divestment plan, estimated between US$25 billion and US$35 billion by 2025.

In addition to its shares in BR, Petrobras also intends to sell its stake in Gaspetro and in some refineries.

Earlier this month, Petrobras was granted approval by the Brazilian antitrust agency CADE for the sale of its Landulpho Alves refinery (RLAM), in Bahia, to Mubadala, the Abu Dhabi government’s sovereign wealth fund.

On Friday, the state-owned company announced a 2% cut in gasoline prices at refineries. It was the third reduction in the year. Nevertheless, the price still accumulates a 34% increase this year.

Source: Exame