Petrobras Signs Deal to Sell Distribution in Paraguay

Source Press Release
Company Petrobras (IFRS US$ Current)Grupo Copetrol 
Tags Corporate Deals, Deals, Refining & Marketing Activities
Date June 27, 2018

Petróleo Brasileiro S.A. – Petrobras, following up on the disclosure made on 10/26/2017, informs that its Board of Directors, in a meeting held yesterday, approved the Sale and PurchaseAgreement (SPA) for the full sale of Petrobras’ stake in the companies Petrobras Paraguay Distribución Limited (PPDL UK), Petrobras Paraguay Operaciones y Logistics SRL (PPOL) and Petrobras Paraguay Gas SRL (PPG) to Grupo Copetrol.

The agreement is being signed today through Petrobras International Braspetro B.V. (PIB BV), Petrobras subsidiary, and Corporación Paraguaya Distribuidora de Derivados del Petróleo S.A., a  Grupo Copetrol company.

The companies that are being sold operate in Paraguay in the segment of distribution and marketing of fuels, LPG, lubricants and other special products, through a network of 197 service stations, in addition to a wholly-owned storage terminal and operations in three airports.

The estimated cash inflow from the sale is US$ 383.5 million (about R$ 1.45 billion) to be paid as follows: advance payment today of US$ 49.3 million by means of a deposit into an escrow account; and US$ 334.2 million on the closing date of the transaction, including approximately US$ 55 million related to the companies cash balance. The value of the sale is still subject to adjustments due to changes in working capital until the conclusion of the operation.

Grupo Copetrol operates in the distribution of fuels and LPG in Paraguay, relying on a network of around 350 service stations and storage terminals.

The conclusion of the transaction is subject to the approval procedures according to the rules and laws of Paraguay.

The operation is part of the Petrobras Partnerships and Divestments Program, in line with the 2018-2022 Business and Management Plan, which establishes the optimization of the company’s portfolio.

This disclosure is pursuant to Petrobras' Divestment Program, which is in line with the special regime for assets divestment by federal mixed-capital companies, provided for in Decree 9.188/2017.

Source: EvaluateEnergy® ©2018 EvaluateEnergy Ltd