Brazil’s state-run oil and gas firm Petroleo Brasileiro has reportedly appointed seven investment banks to divest a 37.5% interest in its fuel distribution unit Petrobras Distribuidora (BR).
The investment banks comprising Morgan Stanley, JPMorgan, Goldman Sachs, Itau Unibanco, XP, Bank of America and Citgroup will manage the offering, Reuters reported citing an undisclosed source familiar with the development.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The stake sale is part of Petrobras’ strategy to raise several billion dollars by offloading assets to reduce its debt load. Over the next five years, the Brazilian oil company is looking to sell $20bn to $30bn in assets.
However, it is not clear if the state-run firm plans to sell its entire 37.5% stake at once, which is said to value approximately R$12.5bn ($2.99bn), Reuters report added.
Brazilian newspaper Valor Economico was the first publication to report about the proposed sale.
In an emailed statement, Petrobras refuted the news that has already hired banks but confirmed that it has started studying the divestment structure.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA Petrobras representative said: “There has still not been a decision by the company’s internal organs about how much of its stake should be sold, the ideal structure of the deal or even whether it will happen.”
Petrobras Distribuidora and the banks did not immediately comment on the matter.
In September 2017, Petrobras initiated the sale process of 90% of its stake in Transportadora Associada de Gás (TAG), which is the company’s natural gas transportation subsidiary that operates and manages a 4,500km gas pipeline system in Brazil.
In the same year, the company approved corporate restructuring of Petrobras Distribuidora, which involved capital contribution of around R$6.3bn ($2.02bn) and a partial split-off of Petrobras Distribuidora.
