PETROBRAS: Company To Sell Fuel Distribution Assets In Paraguay

Petrobras intends to sell its stake in companies that distribute and sell fuels, cooking gas and lubricants in Paraguay. Ita? BBA was hired to be the financial advisor of the potential divestment.

The transaction will involve the subsidiaries Petrobras Paraguay Distribuci?n Limited, Petrobras Paraguay Operations and Logistics and Petrobras Paraguay Gas.

Petrobras, through the companies listed above, has a network of 197 service stations and 113 convenience stores and is also present in the aviation sector, operating in three airports. The company is also the largest fuel distributor in the country. Regarding logistics, it owns a distribution terminal, in the city of Villa Elisa.

According to the company, the fuel distribution assets it owns in Paraguay were purchased from Shell and had their brand image improved since then.

Petrobras will accept offers from distributors with at least 50 stations operating in Paraguay, or with consolidated revenues of at least US$ 200 million. Trading companies can also bid for the assets, as long as they have at least one representative office in South America and reported net revenue of at least US$ 200 million per year.

The companies invited by Petrobras to buy the assets should show interest in the transaction until July 24.

In June, Petrobras said that it would start a divestment process to sell 30 assets until the end of this year, and added that it would disclose half of those assets in the next three months.

The assets are part of a US$ 21 billion sale plan for 2017 and 2018. According to Pedro Parente, Petrobras, chairman, the Pasadena Refinery, in the United States, will be among these assets.

News are provided by InstaForex