Brazil's 3R gets tie-up bid from Enauta, halts talks with PetroReconcavo (updated)
02/04/2024 13:26
(Recasts throughout)
SAO PAULO, April 2 (Reuters) - Brazilian energy firm
Enauta ENAT3.SA has presented an offer to combine with fellow
oil firm 3R Petroleum RRRP3.SA , which in turn said it had
halted talks for a proposed tie-up with rival PetroReconcavo
RECV3.SA to analyse the new bid.
Enauta disclosed the offer late on Monday, saying the
combined company would be "one of the most diversified
independent oil and gas companies in Latin America," potentially
producing more than 100,000 barrels of oil equivalent per day.
The move comes as smaller Brazilian oil companies look for
consolidation following years of growth driven by purchases of
assets previously owned by state-run oil giant Petrobras
PETR4.SA .
Enauta said in a securities filing that its offer was for an
all-stock deal that would include new shares of 3R being issued
and an exchange for Enauta shares. 3R shareholders would hold
53% of the combined company, while Enauta investors would own
47%, it said.
The combination would result in a "balanced, five-year high
organic growth portfolio with ability to add value in an
environment of consolidation and resilience to commodity pricing
cycles," Enauta said.
Since January 3R had been in talks for a potential carve-out
of its onshore oil assets and subsequent combination with peer
PetroReconcavo, a deal suggested by 3R shareholder Maha Energy
MAHAa.ST .
In a separate securities filing, 3R confirmed the Enauta
offer and said it would temporarily halt talks with
PetroReconcavo to analyze Enauta's bid within 30 days.
Enauta did not elaborate on the potential benefits of the
deal, but said its bid implied a 12% premium for 3R shareholders
over the company's current market capitalization.
"The proposal seems to be accretive for both sides, mainly
for 3R as it sets a new floor for its stock price," Citi
analysts led by Gabriel Barra said in a note to clients.
"However, the operational synergies are not so clear as it
is in the PetroReconcavo and 3R merge."
Enauta has a market capitalization of 7.75 billion reais
($1.53 billion), while 3R's market cap currently stands at 8.02
billion reais, according to LSEG Workspace data.
($1 = 5.0546 reais)
(Reporting by Andre Romani and Gabriel Araujo
Editing by Tomasz Janowski)
((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))