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Petrobas agrees to sell stake in ethanol arm as it moves out of biofuels

Brazil-based oil company Petrobras has agreed to sell its 49% stake in the sugar and ethanol joint venture Nova Fronteira Bioenergia SA to partner São Martinho SA.

 Petrobras will receive 24 million new São Martinho shares as payment for the stake. Petrobras said in the filing that it will attribute a $133 million (€127m) value to the deal.

 The 24 million shares São Martinho is going to issue are equivalent to 6.6% of its capital. The shares will not be subject to a lock-up period and Petrobras can sell them later in a structured process, the oil company said.

The sale is one of the five ongoing transactions that Brazil's federal auditing court did not prohibit Petrobras from doing in a recent decision that halted an asset-sale process. Petrobras has set a two-year goal of selling $15.1 billion in assets by the end of this year despite the court's prohibition.





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