Petrobras sells Nova Transportadora do Sudeste to Brookfield-led team

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Petrobras sells Nova Transportadora do Sudeste to Brookfield-led team

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

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).

Brookfield is one of the world's largest asset managers, with more than US$200 billion under management, extensive experience in energy and infrastructure assets and a portfolio that includes companies with over 14,000 kilometers of pipelines in the US, Canada and Australia.

This transaction opens opportunities for partnerships with other companies that have extensive experience and investment conditions, contributing to strengthen the natural gas industry in Brazil. It also fosters new investments to expand gas transportation infrastructure, aiming to create a model of deverticalization of the natural gas chain, desirable by the regulatory body (ANP), stimulating the development of a competitive environment, favorable to the entrance of new players and to the sharing of infrastructure costs.

The sale of 90% of NTS totaled US$5.19 billion. The first installment, corresponding to 84% of the total (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.

This transaction is very important for the Petrobras’ Divestment Plan, corresponding to roughly 35% of the US$15.1 billion target for the period 2015 - 2016.

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.

List of country news

Country news

  • September 22, 2016

    Petrobras to sell majority stake in pipeline business to Brookfield

    Petroleo Brasileiro S.A. or Petrobras (PBR), the semi-public Brazilian multinational corporation in the petroleum industry, has announced it has reach an agreement to sell a 90% stake in its natural gas pipeline and storage unit, Nova Transportadora do Sudeste. Read more
  • September 12, 2016

    State Grid of China completes acquisition of Brazilian power distribution firm

    State Grid Corporation of China (SGCC), a state-owned grid operator, has announced it has acquire controlling stake in a CPFL Energia SA, a Brazilian power distributor for R$5.85 billion (US$1.79 billion). Read more
  • August 16, 2016

    IFC invests in Brazilian bioethanol producer

    IFC, a member of the World Bank Group, will provide BRL150 million (US$47 million) of long-term financing to CerradinhoBio, an ethanol and biomass-based electricity producer operating in the state of Goias, in Brazil. Read more
  • July 29, 2016

    Isolux to sell Brazilian transmission concessions to Brookfield

    Grupo Isolux Corsan SA is close to sell some of its Brazilian power lines to Brookfield Asset Management Inc. Read more
  • July 22, 2016

    China's State Grid to acquire 23 % stake in Brazil’s CPFL Energia

    State Grid Corporation of China (SGCC), a state-owned grid operator, has plans to acquire controlling stake in a CPFL Energia SA, a Brazilian power distributor for R$5.85 billion (US$1.79 billion). Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.