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CEF to sell entire Petrobras stake in the capital markets
Posted on Tuesday, 11 June 2019 13:07
Caixa Econômica Federal (CEF) is offloading its entire 3.2 per cent stake in Petróleo Brasileiro (Petrobras) via an international and domestic secondary offering valued at BRL 7.20 billion (USD 1.85 billion) in the unaffected markets prior to the announcement.

The Latin American, government-owned financial institution is working with four other underwriters on the international part of the offering comprising American depository shares.

It is global coordinator alongside UBS Securities, Morgan Stanley and Bank of America Merrill Lynch, with XP Securities serving as a joint bookrunner.

CEF is also an underwriter on the Brazilian portion of the sale, in conjunction with the local counterparts of UBS, Morgan Stanley and Bank of America Merrill Lynch, as well as with XP Investimentos.

The Brazilian bank expects to price the sale of a total 241.34 million common shares on or about 25th June.

Petrobras is one of the world’s largest integrated oil and gas companies, engaging in a broad range of activities that include exploration and production; refining, transportation and marketing; distribution; and biofuel.

The company had sales revenues of USD 95.58 billion and USD 88.83 billion in the financial year ended 31st December 2018 and 2017, respectively.

It had a net profit attributable to shareholders of USD 7.17 billion in FY 2018, compared with a loss of USD 91.00 million in FY 2017.

The secondary offering is likely to be the second-largest-ever targeting a Brazilian company, and among the top 50 by value globally, according to Zephyr, the M&A database published by Bureau van Dijk.

It also comes as Reuters reported Petrobras is due to receive non-binding proposals for the acquisition of Liquigas Distribudora today, after postponing the deadline from 6th June.

According to the news provider, Advent International, Warburg Pincus and CVC Capital, which intends to form a consortium with other interested parties, will all be in the running for the liquid petroleum gasoline distributor.

© Zephus Ltd