Brazil Government Expands Stake on Petrobras, World’s 4th Largest Company

Petrobras The megacapitalization of Brazil’s state-controlled oil and gas multinational, Petrobrás, has resulted in an expansion of the Brazilian government’s stake in the enterprise: Brasilia’s ownership of voting shares rose from 57.5% to 64% and the amount of social capital controlled by the government went from 39.8% to 48%.

The latter consists of ordinary shares and preferential shares (non-voting) and is distributed as follows: 33.2% belongs to the government itself and 11.8% belongs to the Brazilian Development Bank (“BNDES”) – which is government-controlled.

The rest is now distributed as follows: 3% is owned by Brazil’s sovereignty fund (Fundo Soberano); the Banco do Brasil pension fund (“Previ”) owns 2.9%; the Petrobras pension fund (“Petros”) owns 0.8% – all of which are, again, government controlled. The remaining 48.3% of stock was sold on the open market.

The Petrobras capitalization was the largest ever – a world record of approximately US$ 70 billion dollars (close to 120 billion reais). And it transformed the company into the fourth biggest on the planet – all less than two weeks before a presidential election.

Brazil’s Central Government, which consists of the Social Security system, the Central Bank and the National Treasury, is going to have a record primary surplus in September as a result of the Petrobrás megacapitalization operation.

The largest monthly primary surplus ever was in April 2008, when it reached 16.7 billion reais (US$ 9.8 billion). It is believed that the September surplus could be double that.

So far this year the cumulative primary surplus (January to August) is 29.4 billion reais (US$ 17.2).

ABr

Tags:

Ads

You May Also Like

Mercosur Members Gather in Brazil in Effort to Fix Fractured Group

Mercosur presidential summit next week in Brazil has on the table an agenda of ...

Industry Jobs Grow 6.5% in Brazil, But Unemployment Is Still 10.2%

The 5% reduction in what the Brazilian industry earned on a per worker basis ...

In Brazil, Graft and Fraud Are Just the Cost of Doing Business

President Luiz Inácio Lula da Silva returns home from his six-day five-nation trip that ...

Giovanna Maira, blind Brazilian singer

Blind Brazilian Singer Wins Young Soloist Award in the US

VSA arts (formerly Very Special Arts) announced Thursday, February 16, the recipients of the ...

Algeria Sees Arab Summit in Brazil as Good for Trade

The meeting of heads of State during the South America-Arab Countries Summit will pave ...

How to Marry a Brazilian

For an American citizen the road to marry a Brazilian can be rugged and ...

Take Care of Your Druggies and Leave Narco Fight to Us, Brazil’s Lula Tells Obama

The president of Brazil, Luiz Inácio Lula da Silva, sent a message to his ...

43% of Brazil’s GDP Represented in Business Gathering in Portugal

Telecom, a telecommunication company from Portugal with a big presence in Brazil, is organizing ...

US and EU Subsidies of US$ 13 Billion Harm Brazil and Developing Nations

The European Union and the United States are illegally subsidizing their production of corn, ...

Farewell to a Titan

Brazil’s pop-rock scene suffers a severe blow with the tragic death of Marcelo Frommer, ...