Petrobras Sells 90% of Gas Pipeline Unit

Petrobras’ Board of Directors has approved the sale of 90% of the shares of Nova Transportadora do Sudeste (NTS) to Brookfield Infrastructure Partners and its affiliates, through a Private Equity Investment Fund that includes British Columbia Investment Management Corporation, CIC Capital Corporation and GIC Private Limited as other shareholders.

NTS was created in accordance with the Statement of Commitment signed with the National Agency of Petroleum, Natural Gas and Biofuels – ANP, in which Petrobras committed to restructure its wholly-owned subsidiary Transportadora Associada de Gás (TAG) in order to create one gas transportation company in the Southeast of Brazil (NTS) and another in the North and Northeast (TAG).

The sale of 90% of NTS totaled US$5.19 billion. The first installment, US$4.34 billion, will be paid at the closing of the transaction, and the remaining amount, US$850 million, in five years.

The sale of NTS was carried out through a competitive process and the transaction price was appraised by four financial institutions, through three fairness opinions and one valuation report.

The completion of the transaction is subject to the approval at Petrobras General Shareholder´s Meeting and to certain usual precedent conditions, including approval by the regulatory entities.

 

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