Extraordinary General Meeting Approved the Sale of Liquigás

Source Press Release
Company Petrobras (IFRS US$ Current)ALFA, S.A.B. de C.V 
Tags Corporate Deals, Deals, Chemicals Activities
Date January 31, 2017

Petrobras announces that, today, the Shareholders’ Extraordinary General Meeting approved the sale of its wholly-owned subsidiary Liquigás Distribuidora S.A. (“Liquigás”), announced on November 17, 2016.  

The Shareholders’ Meeting approved the sale of 100% of the shares held by Petrobras of Liquigás to Companhia Ultragaz S.A., a wholly-owned subsidiary of Ultrapar Participações S.A., for the amount of R$ 2.67 billion.

Liquigás operates in the bottling, distribution and trading of liquefied petroleum gas (LPG). The company is present in almost all Brazilian states, and has 23 operating centers, 19 warehouses, one road-railroad storage and loading base, and a network of approximately 4,800 authorized resellers.

The conclusion of the operation is still subject to compliance with preceding conditions negotiated.  

The sale of PetroquímicaSuape and Citepe was removed from the Shareholders’ Meeting agenda due to the Regional Federal Court decision that granted the injunction determining the suspension of the sale of these assets, as disclosed today in a material fact.  

Petrobras is taking all the necessary judicial measures to protect its investors and own interests.

PetroquímicaSuape and Citepe are wholly-owned subsidiaries of Petrobras and are part of the company’s Chemical-Textile Industrial Complex, located in Ipojuca, in the state of Pernambuco.

The operating cash flow generation of the Citepe-Suape Complex is negative, which demands regular capital contributions. In the case of the sale process is not executed, Petrobras will analyze the possibility of closing this Complex, in order to reduce the additional capital contributions that pressures the company’s cash.

Both transactions are aligned to Petrobras’ Strategic Plan/2017-21 Business and Management Plan, withdrawing entirely from LPG distribution and petrochemical business. These transactions are part of the partnership and divestment program that reached US$13.6 billion in 2015-2016 period.

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