Petrobras speeds up plans to sell petrol station business

Petrobras speeds up plans to sell petrol station business

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Chamber Member News Post Date: 10/05/17 Source: Financial Times By: Joe Leahy and Andres Schipani
Summary

Petrobras, Brazil’s state-controlled oil company, is speeding up plans for what is expected to be one of the country’s biggest privatisations, the listing of its petrol station business, to take advantage of favourable market conditions.

Pedro Parente, chief executive of Petrobras, said he could not confirm market expectations for an initial public offering by the final quarter of this year or that the deal would value the company at between R$30bn ($9.5bn) to R$40bn.

But the strong performance of Brazil’s stock market meant the company was preparing BR Distribuidora for listing “as soon as possible”.

“We have to always be prepared so that if the market grins at us, we can go over there and give it a kiss,” Mr Parente said in an interview.

The listing of BR Distribuidora, the owner of Brazil’s main petrol station network, would indicate that Brazil’s once moribund equity issuing market is recovering.

Appointed last year to turn Petrobras round after a political corruption scandal known as Lava Jato, or car wash, Mr Parente is eyeing the sale as part of plans to reduce the company’s debt.

Brazil’s Ibovespa benchmark stock index has gained 28 per cent over the past year as the country recovers from the deepest recession in its history. Petrobras shares rose 16 per cent during the same period.
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