- Mergers & Acquisitions
Petrobras subsidiary PBio divests interest in 2 biodiesel plants
Brazil’s Petrobras said that its wholly-owned subsidiary Petrobras Biocombustível SA (PBio) has concluded the sale of all of its shares (50% of the company’s capital) in BSBios Indústria e Comércio de Biodiesel Sul Brasil S/A ( BSBios) to RP Participações em Biocombustíveis SA.
Founded in 2011, RP Participações em Biocombustíveis SA is a company controlled by the ECB Group. Its main activity is to participate and invest in companies that produce and sell biofuels. Its main investment is the shareholding in BSBios.
BSBios owns two biodiesel plants:
(i) Passo Fundo biodiesel plant, located in the State of Rio Grande do Sul, with a production capacity of 414 thousand m³ / year, crushing capacity of 1,152 thousand tons/year and storage capacity of 120 thousand tons of grains, 60 thousand tons of bran and 7.5 thousand m³ of biodiesel; and
(ii) Marialva biodiesel plant, located in the State of Paraná, with a production capacity of 414 thousand m³ / year and a storage capacity of 3 thousand m³ of vegetable oil, 1.5 thousand m³ of animal fat and 4.5 thousand m³ of biodiesel.
After the fulfillment of all the prerequisite conditions, the transaction was concluded with the payment of BRL253 million (USD47 million) to PBio. In addition to this amount, BRL67 million (USD12.4 million) is held in escrow for indemnification of eventual contingencies and will be released according to the terms and conditions set forth in the contract.
BRL2 million (USD0.37 million) was received in advance as interest on equity in December 2020, bringing the total value of the transaction at BRL322 million (USD60 million).
The transaction aligns with the Brazilian oil and gas company’s strategy to optimize its portfolio and improve the company’s capital allocation, to maximize shareholder value.