Guarani only willing to pay Petrobras half the value of its 42.9% equity stake

In Brazil, Petrobras hasn’t managed to secure a buyer willing to pay the asking price for its 42.9% stake in Guarani’s sugar and ethanol mills. Tereos, who owns the majority of Guarani, has offered $200 million but Petrobras says it’s not enough. The asset is on the company’s books as being worth $407 million, plus it also owes $81.4 million from the investment it promised when buying the share in Guarani in 2010. Of the nine ethanol plants Petrobras owns stakes in, seven of them are Guarani’s.