Petrobras suspends IPO for fuel retailing branch
Brazilian energy giant Petrobras has announced it will be postponing the registration as a publicly-held company and the IPO of its subsidiary Petrobras Distribuidora (BR), Brazil's major fuel retailer.
Seized by a political and structural crisis, state-owned Petrobras had announced it would be putting its distributing branch up for sale. However, the Board of directors decided last Saturday that due to the negative conditions of the market it would be best to postpone the sale.
Instead, the Board has authorized the search for an strategic partner for BR.
During the same meeting the Board approved the sale of 49% of its natural gas subsidiary Gaspetro to Mitsui Gás e Energia do Brasil Ltda, a subsidiary of Japan´s Mitsui & Co.
The value of the transaction is estimated at 1.9 billion Reales (USD 490 million), and it would signify the 8th natural gas company with operations in Brazil which Mitsui Gás e Energia do Brasil acquires a stake in.
