The Brazilian state-held company Petrobras has approved a corporate restructuring of its distribution subsidiary BR Distribuidora (BR). The process will include a capital contribution of R$6.3bn (US$2bn) and a partial spin-off of BR which will be incorporated in Downstream Participações Ltda, a subsidiary of Petrobras. The company plans to fully use the funds created by the capital contribution towards pre-payment of debts, which were earlier contracted by BR and secured by Petrobras. It fits into the framework of the Petrobras Strategic Plan, which intends to optimize the company's portfolio and reduce its debt exposure.
The execution of the operation is not expected to have any significant impact in the equity of shareholders in Petrobras and BR. However, the deal is still subject to regulatory approval from the Shareholders General Meeting of BR and from Downstream Participações as well.