Dec. 29 (Bloomberg) -- Lupatech SA, a Brazilian provider of oil equipment and services that is selling assets to meet debt payments, said it will offer as much as 700 million reais ($374 million) of new stock.
Brazilian development bank BNDES and pension fund Petros have agreed to buy a combined 300 million reais of stock in Lupatech. GP Investments agreed to buy 50 million reais worth of shares. Existing shareholders will have preferential rights to buy the remaining 350 million reais worth of equity offered in the sale, Lupatech said. Petros and BNDES are Lupatech’s second-and third-largest shareholders.
Petroleo Brasileiro SA, Brazil’s state-controlled oil producer and Lupatech’s biggest client, plans to use the company’s services and equipment as it seeks to develop the Western Hemisphere’s largest crude discovery in more than three decades. BNDES is looking to help Lupatech implement its investment plan as part of a policy to expand the domestic oil-services industry.
Lupatech, based in Caxias do Sul, Brazil, said it expects to conclude the stock sale in 45 days. The company also said it will buy oil-services provider San Antonio Brasil for 50 million reais.
Lupatech rose 3 percent to 4.43 reais in Sao Paulo at 1:20 p.m. The stock has fallen 77 percent this year amid weak demand for its anchor ropes and valves for offshore oil platforms.
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