Petrobras prepares sale of stake in BR Distribuição, sources say

Jan 29, 2020

Petrobras hired seven investment banks to sell a stake in BR Distribuidora, three sources with knowledge of the matter told Reuters.

The offer will be coordinated by the investment banking units of Morgan Stanley, JP Morgan Chase & Co, Goldman Sachs Group, Itaú Unibanco Holding, XP, Bank of America and Citgroup, the sources said, on condition of anonymity.

Petrobras has a divestment plan estimated at between 20 billion and 30 billion dollars, for the next five years.

The company seeks to raise funds to reduce its debt and invest in highly profitable assets in the pre-salt layer.

In its plan, the state-owned oil company offered its current 37.5% stake in BR Distribuidora for sale.

Still, it is not clear whether Petrobras will sell its entire stake in the fuel distributor, which is worth 12.5 billion reais, at once.

One of the three sources said that Petrobras has defined the banks, but is still finalizing internal approvals for the agreement.

The newspaper Valor Econômico previously reported on the hiring of banks.

Petrobras has denied that it has already hired banks, but said it has already begun to study how it will structure the divestment.

“There is still no decision by the company’s bodies on how much of their slice will be sold, on the ideal structure of the transaction or even if it will happen,” said a representative from Petrobras by email.

BR Distribuidora and the banks did not immediately comment on the matter.

Source: Reuters, 01/29/2020