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:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Betting Biodiesel Will Free It from Foreign Oil

Although Brazil is a big petroleum producer, it still has to import diesel for ...

The Arrival of Cuban Doctors Is Revealing the Cruel Face of Brazil’s Medical Class

Brazil’s newspapers were surprised by the Brazilian government’s decision to import 4000 doctors from ...

LETTERS

California and Israel have been used as inspiration for several irrigation plans in the ...

New Tests Support Estimates of Up to 8 Billion Barrels of New Light Oil in Brazil

Petrobras, the Brazilian government controlled oil and gas multinational, said its seventh well in ...

Brazil Ready to Stay 10 Years in Haiti

Brazilian General Augusto Heleno Ribeiro, commander of the United Nations Peace Forces in Haiti, ...

Brazilian Economist Describes “Global Disorder” Created by Economic Crisis

Talking during a magisterial conference before the United Nations Economic Commission for Latin America ...

To Beat a Woman Is Just Natural in Brazil

Nineteen percent of Brazilian women, that is one in every five, have been victims ...

Outrage After Brazil’s Superior Court Rules Sex with Three 12-year-old Girls Was Not Rape

A panel of judges at Brazil’s Superior Appellate Court (Superior Tribunal de Justiça – ...

Brazil Vows Better Help to 3 Million Working Children and Their Families

Brazil’s Program for the Eradication of Child Labor (Peti) will be incorporated into the ...

Brazil See Signs of a Recovering Economy

The number of the first quarter are already giving signs of improvement in the ...