Petrobras launches sale of fuel distribution unit

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Tuesday, October 4, 2016

Brazil's Petrobras has begun a process for the sale of a 51% stake in its fuel distribution unit, the state-run oil company said on Tuesday.

In a statement, Petrobras said it sent an investment teaser to several companies, which were shortlisted with the help of an unnamed consultant.

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"The selection of companies that received the teaser was based on objective criteria, in conjunction with a financial institution specializing in mergers and acquisitions ...," Petrobras said.

BR Distribuidora, as the distribution unit is known, is Brazil's largest fuel retailer with a network of more than 7,000 service stations.

Petrobras' board approved a competitive bidding process for BR Distribuidora in July. Under terms of the sale, the buyer will assume a maximum 51% stake in the company and share its control with the Rio de Janeiro-based energy giant.

Petrobras has raised about two thirds of the US$15.1bn it plans to receive from divestments in 2015 and 2016.

The biggest deal so far has been the US$5.19bn sale of a 90% stake in the Nova Transportadora do Sudeste gas pipeline unit to a consortium led by Brookfield Asset Management.

Petrobras has also offloaded oil and gas fields, refineries, and other distribution assets as it seeks to ease the industry's largest debt load and overcome a crippling corruption scandal.

ALSO READ - Bang for buck: Why Brookfield is buying up in Brazil