Petrobras sold 30% of BR Distribuidora shares last year. As the state-owned company's stake was less than 50%, the operation meant the privatization of the former subsidiary

Petrobras informed in a material fact last night (26/08), that its board of directors approved the proposal for the sale of the remaining 37,5% stake held by the state-owned company in BR Distribuidora. Petrobras is sued for irregularly depositing tons of equipment and pipes from oil platforms in the Campos Basin, Rio de Janeiro

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According to Petrobras' statement, the transaction will take place through a secondary public offering of shares (follow on), whose launch will be defined later and is subject to market conditions, approval by the oil company's internal bodies and analysis by the Securities Commission Securities (CVM) and other regulatory bodies.

“This communication is for informational purposes only, under the terms of the legislation and regulations in force and should not be considered as an announcement of an offer in Brazil, the United States or any other jurisdiction”, highlighted Petrobras in the statement.

"This operation is in line with the optimization of the portfolio and the improvement of the company's capital allocation, aimed at generating value for its shareholders", complete Petrobras in a note.

Petrobras leaving BR Distribuidora

In July last year, Petrobras sold shares in BR Distribuidora, reducing its stake in the company from 71,25% to the current 37,5%. As the state-owned company's stake was less than 50%, the operation meant the privatization of the former fuel sales subsidiary.

The operation took place a month after the Federal Supreme Court (STF) authorized state-owned companies to dispose of subsidiaries without the need for approval by the National Congress.

BR Distributor

Petrobras Distribuidora is a publicly-held corporation headquartered in the city of Rio de Janeiro, RJ, and a former subsidiary of Petrobras whose control was sold in July 2019, although the state-owned company still holds 37,5% of company's shares.

Founded on November 12, 1971, it operates mainly in the segment of distribution and commercialization of fuels derived from petroleum, such as diesel oil, gasoline, QAV (aviation kerosene); biofuels such as ethanol and biodiesel; in addition to lubricants, asphalt emulsions and chemical products.

It is present in the 26 Brazilian states and in the Federal District, with more than 8 service stations currently. Currently, Petrobras Distribuidora is the largest company in the fuel distribution sector in Brazil, with Ipiranga and Raízen (a joint venture formed between Shell and Cosan) as its main competitors.