Rio de Janeiro, July 22, 2016 – Petróleo Brasileiro S.A. (Petrobras), following up its material fact announcement of May 3, 2016, announces that it today signed a sale and purchase agreement with the Southern Cross Group for 100% of Petrobras Chile Distribuición Ltda (PCD), held through Petrobras Caribe Ltda.
The estimated cash inflow from the deal is US$464 million, divided as follows: US$88 million arising from the distribution of surplus cash before the transaction closed; US$367 million to be paid by Southern Cross on the day of closing; and a price adjustment payment of US$9 million, to be made within 65 working days after closing.
The deal’s completion is expected to take three to four months, subject to compliance with certain prior conditions, as established in the agreement and customary for this kind of operation.
PCD is Petrobras’ fuel distribution company in Chile. It has 279 gas stations, 8 distribution terminals, operations at 11 airports, stakes in 2 logistics companies, and 1 lubricant plant.
The Southern Cross Group is a private equity firm founded in 1998, with US$2.9 billion of assets under management, which focuses on investments in Latin America, in companies in the industrial, service, logistics and consumer goods sectors.
This transaction, carried out through a competitive bid process, is an important part of Petrobras’ 2015-2016 Disposal Plan.
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