Petrobras – Investor Relations

Petrobras

Investor Relations

Board Approval of LFT Valuation and Increase of Company's Share Capital

Petróleo Brasileiro S.A. – Petrobras
Avenida República do Chile, n° 65, Centro Rio de Janeiro - RJ
Ticker symbols on the Brazilian Stock Exchange BM&FBOVESPA:
“PETR3” (Common Shares) and “PETR4” (Preferred Shares)
Ticker symbols on the New York Stock Exchange:
“PBR” (Common ADSs) and “PBRA” (Preferred ADSs)


Rio de Janeiro, September 29 2010 - Petróleo Brasileiro S.A - Petrobras announces that its Board of Directors, in a meeting held today, decided to:

(i) ratify the value of the Brazilian federal treasury bills (LFTs) at R$4,383.583781 for each of the 4 (four) series of LFTs, maturing on September 7, 2014, March 7, 2015, September 07, 2015, and September 7, 2016, as specified in the valuation report prepared by PricewaterhouseCoopers Corporate Finance & Recovery Ltda. (the "Report");

(ii) approve the Report, in the amount of R$67,815,921,649.51, with regard to the total number of LFTs delivered by the Company's shareholders to the settlement account of the BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros (“BM&FBOVESPA”) in the Special System for Settlement and Custody – Selic and that were used for the payment of 1,546,118,849 common shares issued by the Company in nominative, book-entry form, with no par value (the “Common shares”), and of 835,495,053 preferred shares issued by the Company in nominative book-entry form, with no par value (the “Preferred shares”); and to

(iii) ratify the capital increase, which had been approved in a Board of Directors meeting held on September 23 2010, after confirmation of the subscription of 2,293,907,960 Common Shares and of 1,788,515,136 Preferred Shares in the Offering of Common Shares and Preferred Shares issued by the Company (the "Offering"), from R$85,108,544,378.00 to R$200,160,863,468.80, to be represented by 7,367,255,304 Common Shares and 5,489,244,532 Preferred Shares.

The Company also informs that, in compliance with the corporate approval above, the Offering of 2,293,907,960 Common Shares and of 1,788,515,136 Preferred Shares was settled on the same date.

Additionally, the Company provides below a table showing in detail the final allocation of the Offering, without taking into consideration the potential exercise of the over-allotment options by the Global Coordinators which, are for an aggregate of up to an additional 187,997,094 Common Shares and/or Preferred Shares issued by the Company, including Common Shares and Preferred Shares in the form of American Depositary Shares (the "Over-allotment"), as announced in the preliminary prospectus supplement, dated September 3 2010, as well as in the final prospectus supplement for the Offering, dated September 23, 2010 (collectively, the "Offering Documents"):



Brazil

ON

PN

Total

Priority Offering

1.739.259.091

1.268.694.377

3.007.953.468

Market

285.352.119

318.986.805

604.338.924

Institutional

272.769.559

268.440.436

541.209.995

Retail

12.582.560

50.546.369

63.128.929

Total Brazil without over-Allotment

2.024.611.210

1.587.681.182

3.612.292.392

 

 

 

 

International

ON

PN

Total

Market

269.296.750

200.833.954

470.130.704

Institutional

216.180.680

166.667.504

382.848.184

Retail

53.116.070

34.166.450

87.282.520

Total Brazil without over-Allotment

269.296.750

200.833.954

470.130.704

 

 

 

 

Total without over-Allotment

2.293.907.960

1.788.515.136

4.082.423.096



Of the total amount of the Offering of R$115,052,319,090.80, R$67,815,921,649.51 was received in the form of LFTs. As described in the Offering Documents, the proceeds of the Offering are to be used to pay for the Assignment Contract and to finance the Company's Business Plan. As such, following the completion of the settlement of the Offering, the Company has transferred to the Brazilian federal government, all of the LFTs it has received and the additional amount of R$6,991,694,757.49 to pay for the initial purchase price in the amount of R$74,807,616,407, as specified in the Assignment Contract.

The following tables provide the Company's share capital breakdown before the Offering and after the settlement, which took place today.



 

SHAREHOLDERS

 

 

VOTING CAPITAL

 

NON VOTING CAPITAL

 

JOINT STOCK

COMMON

SHARES

 

%

PREFERRED

SHARES

 

%

TOTAL

SHARES

 

%

FEDERAL GOVERNMENT

2.818.751.784

55,56%

0

0,00%

2.818.751.784

32,1%

BNDES PARTICIPAÇÕES S.A – BNDESPAR - BNDES

98.457.000

1,94%

574.047.334

15,51%

672.504.334

7,7%

OTHERS

2.156.138.560

42,50%

3.126.682.062

84,49%

5.282.820.622

60,2%

TOTAL

5.073.347.344

100%

3.700.729.396

100%

8.774.076.740

100%



(1) Excludes the effects of Decree No. 7295, of September 8, 2010.



Share Capital Breakdown After the Offering
(considering the over-allotment shares)

 

 

SHAREHOLDERS

 

VOTING CAPITAL

NON VOTING CAPITAL

JOINT STOCK

COMMON

SHARES

 

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