The capital increase by the China Petrochemical Corporation (Sinopec) in the businesses of Portuguese oil company Galp in Brazil is scheduled for the last week of March, the chief executive of Galp, Manuel Ferreira de Oliveira said in London.
Of the seven seats on the board of Petrogal Brasil, two will belong to the new Chinese shareholder, said the Galp CEO said at a press conference held in London as part of Capital Markets Day.
Ferreira de Oliveira confirmed that the Chinese would pat 4.8 billion euros for 30 percent of Petrogal Brasil by the end of this month. Sinopec will also take on 400 million euros of the company’s debt.
Of the 4.8 billion, 10 to 20 percent are expected to be used to fund the company’s short term investment needs and the remainder will be loaned to the Petrogal Brasil shareholders and paid back between 2013 and 2016, depending on investment needs.