CVM Boosts Ultrapar’s Ipiranga Offers

Brazil’s Comissão de Valores Mobiliários has moved to increase the price Ultrapar Participações will offer for Petroleo Ipiranga shares it doesn’t own by 10.9% to BRL64.43 per share. The decision, subject to the approval of the CVM’s board, was taken in response to minority shareholders’ plea that there was a double discount on the CBPI valuation calculation, preventing them from accessing part of the premium paid to the controlling shareholders. The CVM also confirmed the registration for the public acquisition offerings for subsidiaries Distribuidora de Produtos de Petroleo Ipiranga and Refinaria de Petróleo Ipiranga shares at BRL112.07 and BRL106.28, respectively, the same values from the Ipiranga deal announcement. Ultrapar, Petrobras and Braskem agreed in March to buy Ipiranga group, which includes the oil company, for $4bn. Ultrapar is required under Brazilian law to make a follow-on offer to minority shareholders.