Americas News
Petrobras Intends to Sell 25% of its Fuel Distribution Unit
Petroleo Brasileiro SA (Petrobras) is intending to sell around 25 percent of its fuel distribution unit, Petrobras Distribuidora SA (BR), Bloomberg Business reports.
BR, which which among other products, distributes marine diesel and lubricants, was said to be valued by banks at 30 billion reais to 40 billion reais ($8.7 billion to $11.6 billion).
Citigroup Inc. is reported to be leading a group of advisers that met on July 30 in preparation for a proposed October of November sale, and included advisors from Banco Bradesco BBI SA, Banco Itau BBA SA, Banco do Brasil SA, and Bank of America Corp.
Petrobras, as well as involved banks are said to have declined comment.
On July 31, Aldemir Bendine, CEO of Petrobras, was reported to have said that the company may list at least 25 percent of the gas-station network, but Bank of America analysts are said to have speculated that as much as 48 percent could be possibly sold.
The company has reportedly put up almost $60 billion in assets for sale through 2018, as well as to have ordered $15 billion in divestments by the end of 2016, with an additional $42.6 billion by 2018.
Shares of Petrobras closed the past 12 months with an overall 48 percent decline.
Petrobras’ annual earnings release showed that BR generated 120.6 billion reais ($34.58 billion) in revenue last year.
In May, Petrobras reported that its fuel oil sales, including bunker fuel, have dropped 23 percent in the first quarter of 2015.
