RIO DE JANEIRO (Reuters) - Brazilian state-run oil firm Petroleo Brasileiro SA is planning to privatize its fuel distribution unit in a share offering in late July, the company said, in a process that would raise up to 9.28 billion reais ($2.41 billion) considering Tuesday’s closing price.
In a prospectus released early on Wednesday by Petrobras, as the firm is known, the company released the long-awaited details of a share offering that would effectively privatize Petrobras Distribuidora SA.
According to the prospectus filed with Brazilian securities industry watchdog CVM, the firm will sell at least 25% of Petrobras Distribuidora’s shares, a proportion that could increase to 33.75% through overallotment provisions. As Petrobras currently holds 71.25% of the company’s shares, the offering will reduce Petrobras’ stake to less than 50%, effectively privatizing the fuel distribution firm.
The offering would raise between 6.87 billion and 9.28 billion reais, considering closing prices on Tuesday.
Petrobras expects to price the share offering on July 23. Sales of the supplementary and additional allotments in the offering may be concluded by August 28, according to the documents.
($1 = 3.85 reais)
Reporting by Gram Slattery; Editing by Bill Trott