Petróleo Brasileiro S.A. (Petrobras) has reported that its Board of Directors approved the signing of the contract for the sale of Liquigás Distribuidora S.A. to Companhia Ultragaz S.A., a subsidiary of Ultrapar Participações S.A. Liquigás is a wholly-owned subsidiary of Petrobras and operates in the bottling, distribution and trading of liquefied petroleum gas (LPG). The company is present in almost all Brazilian states, and has 23 operating centres, 19 warehouses, one road-railroad storage and loading base, and a network of approximately 4800 authorised resellers.
Ultragaz, Brazil’s first distributor of LPG, serves approximately 11 million homes in the bottled gas segment and 50 000 customers in the bulk segment.
The total value of the sale corresponds to an Enterprise Value of R$2.8 billion. The amount to be paid will be restated by the Interbank Deposit Certificate (Certificado de Depósito Interbancário – CDI), between the dates of signing and closing of the transaction. The value will still be subject to adjustments resulting from the variations of working capital and the position of the net debt of Liquigás between 31 December 2015 and the date of closing of the deal.
The operation, conducted through a competitive process, is part of the 2015 - 2016 Disinvestment Plan and is aligned with the Company’s Strategic Plan, which aims to optimise the business portfolio, with focus on oil and gas, withdrawing entirely from LPG distribution.
This transaction is still subject to the approval at the Shareholders’ Meetings of Petrobras and Ultrapar, and to compliance with usual preceding conditions, including approval by the Administrative Council for Economic Protection (CADE).
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/21112016/petrobras-announces-approval-for-liquigs-sale/