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Petrobras is Considering an IPO for BR Distribution Company
06/06/2017 - 11h54
FROM SÃO PAULO
Petrobras is studying the launch of an IPO (Initial Public Offering) for shares in BR Distribuidora (BR Distribution Company) in order to settle the imbroglio surrounding its largest subsidiary, which is among assets whose sales were suspended by the Federal Accounts (Auditing) Tribunal [TCU] at the beginning of this year.
During an event for investors on Monday (the 5th), the state-controlled company's Director for Finance and Investor Relations, Ivan Monteiro, confirmed that this possibility is on the table.
In his opinion, the recovery of the Brazilian Stock Market (up 24% in 12 months) could be positive for the IPO, but he stressed that no formal proposal has yet been presented to the Board of Directors.
In January of this year, the TCU suspended a plan for sales of Petrobras' assets and ordered it to adopt a more transparent business model. The state-controlled company's goal is to generate US$ 21 billion in asset sales by the end of 2018.
On Monday, Pedro Parente, the President of Petrobras, said that he plans to sell or create partnerships involving 30 corporate assets by the end of the year, half of those within the next three months. The Pasadena refinery, which is a target of investigations of the Federal Police's so-called Car Wash operation, is included in these.
|The state-controlled company's holding in the Braskem petrochemical corporation is another asset under review|
Petrobras announced that it has started analyzing what would be necessary to achieve adherence to Level 2 Stock Market standards for business activities, which have more rigid rules regarding governance.
Translated by LLOYD HARDER