CORRECTED-Petrobras expects bids for BR fuel unit by November -CEO

Wed Jul 27, 2016

(Corrects to say Petrobras will have 60 to 75 percent of total fuel unit stock after sale, not 60 to 65 percent)

Brazil’s state-controlled oil company Petróleo Brasileiro SA expects to receive binding offers for a controlling stake in its fuel distribution unit, BR Distribuidora, by late November or early December, Chief Executive Officer Pedro Parente said on Wednesday.

The sale of a controlling voting stake could be completed by mid-2017, Parente told reporters in Brasilia. Under terms of the proposed plan, the oil company known as Petrobras will keep 49 percent of voting stock in the unit.

Petrobras also plans to keep 100 percent of non-voting preferred shares in Petrobras Distribuidora SA, as the fuels unit is formally known, leaving it with 60 percent to 75 percent of the unit’s total capital after the sale is complete. (Reporting by Lisandra Paraguassu; Writing by Jeb Blount; Editing by Jeffrey Benkoe)

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