Guedes says privatizing Petrobras via “Novo Mercado” would boost value sharply

The logo of Brazil’s state-run Petrobras oil company is seen on a tank in Petrobras Paulinia refinery in Paulinia, Brazil July 1, 2017. REUTERS/Paulo Whitaker//File Photo

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BRASILIA, June 20 (Reuters) – Brazilian Economy Minister Paulo Guedes said on Monday that privatizing state-run oil firm Petrobras (PETR4.SA) via migration to the “Novo Mercado” segment of the Brazilian stock exchange would increase its market cap from 450 billion reais to 750 billion reais ($145 billion).

The Novo Mercado is a segment of the B3 exchange with stricter governance rules, including a single class of shares.

Speaking at an event hosted by development bank BNDES, Guedes also said Brazil is vital to energy security of the West, which should speed up the country’s access to the Organization for Economic Cooperation and Development (OECD).

($1 = 5.1835 reais)

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Reporting by Marcela Ayres Editing by Brad Haynes

Our Standards: The Thomson Reuters Trust Principles.

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