Petrobras

Clarification on News: Petrobras Distribuidora (BR) IPO

Rio de Janeiro, August 29, 2017 – Petróleo Brasileiro S.A. – Petrobras reports that it received on 8/28/2017, Official Letter No. 299/2017/CVM/SEP/GEA-1, which requests the following clarification:

Official Letter No. 299/2017/CVM/SEP/GEA-1

“Dear Executive Officer,

I refer to the news article headlined “Oferta Inicial de Ações da BR Distribuidora deve ser feita até dezembro” [BR Distribuidora IPO to be made by December”] as disclosed on Aug. 25, 2017 in O Globo newspaper.

In this respect, I kindly request clarification on the veracity of the news and, if confirmed, on the reasons why said fact was not disclosed to the market, especially in terms of the intention to conclude the offer by December 2017. ”

Clarification

According to the material fact disclosed on 06/22/2017, Petrobras Executive Board has authorized, on that date, the preparation of studies for the IPO of Petrobras Distribuidora S.A. (BR), which was considered as the best option for capturing value, when analyzing the current situation of the market.

On 07/11/ 2017, the Board of Directors reviewed the recommendation by the Executive Board and approved the IPO through the secondary public offer of BR shares, as disclosed through material fact.

Although Management intends to conclude the transaction as soon as possible, taking advantage of favorable market conditions and meeting Petrobras’ need to execute its partnership and divestment program, such operations are complex, require different development stages, and are subject to other factors that make it impossible to accurately determine the date of its implementation, among them the approval by regulatory bodies and the prevailing market conditions at the time of the offer.

Thus Petrobras clarifies that the information published in O Globo newspaper on August 25, 2017, which reports the opinion of the Company’s Board of Directors Chair, only expresses a personal wish of Professor Nelson Carvalho, rather than a decision or commitment of Petrobras, since this would not be possible at this time, due to the circumstances described above.

Similarly, in the story published by Reuters on August 9, 2017 (a date prior to the news in O Globo newspaper), in which, on the occasion of the ceremony of Petrobras’ accession to B3’s state-held company governance program, Professor Nelson Carvalho report the intention to implement the BR IPO later this year, emphasizing that such date was his “personal ambition”,  once the IPO final schedule was not decided yet by the Board of Directors.

For these reasons, the Company decided that this information should not be considered a material fact.

Categories: Petrobras

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