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Re: john1045 post# 5756

Friday, 12/23/2016 8:18:49 AM

Friday, December 23, 2016 8:18:49 AM

Post# of 5825
John, numbers are only for GDS and get updated every month:

"As derivatives, depositary receipts can be created or canceled depending on supply and demand. When shares are created, more corporate stock of the issuer is purchased and placed in the custodian bank in the account of the depositary bank, which then issues new GDRs based on the newly acquired shares. When shares are canceled, the investor turns in the shares to the depositary bank, which then cancels the GDRs and instructs the custodian bank to transfer the shares to the GDR investor. The ability to create or cancel depositary shares keeps the depositary share price in line with the corporate stock price, since any differences will be eliminated through arbitrage"

remember two GDSs are worth one ordinary share of prio3, so for the 1.5M GDS there are 750k of outstanding shares held by the custodian bank in Brazil. The total number of outstanding shares of PetroRio is 13,190,747:
ir.petroriosa.com.br/conteudo_en.asp?idioma=1&conta=44&tipo=58650

As for the acquisition of GoldmanSachs' interest in Brasoil, it seems like this is only the beginning and PetroRio is aiming for more:

First step
By Lauro Jardim
12/21/2016 9:27 PM
blogs.oglobo.globo.com/lauro-jardim/2.html
"PetroRio announced today the purchase of 23.19% of Goldman Sachs shares in Brasoil. But what PetroRio intends to buy is the totality of the oil company's shares. So he took the first step.
Brasoil has annual revenues of R $ 150 million and operates in the fields of Manati (BA), Pirapema (AP) and two blocks in Foz do Amazonas (AM).
With the acquisition of all Brasoil, PetroRio will be 30% larger."





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