Brazil's PetroReconcavo, 3R Petroleum soar on suggested tie-up
18/01/2024 13:44
** Shares in Brazilian 'junior oils' PetroReconcavo RECV3.SA
and 3R Petroleum RRRP3.SA rise on a suggested business tie-up
between the firms
** Sweden's Maha Energy MAHAa.ST acquired a 5% stake in 3R
and proposed a carve-out of its onshore oil assets, which would
then be combined with PetroReconcavo
** Maha says there are "enormous opportunities" to be
captured by the firms
** 3R Petroleum confirms having received Maha's suggestion
and says it will analyze it
** PetroReconcavo in a separate statement says there are no
talks as of now as it has not yet received any proposal
** XP Investimentos analysts estimate a potential upside of
29% for 3R Petroleum shareholders and 18% for PetroReconcavo
shareholders
** "We have been bullish for junior oil & gas consolidation,
and, at a moment when both stocks are undervalued, we believe
even if this deal does not move forward, it sheds light on the
asset's great potential and opportunities, which should help
both investment cases," XP says
** Shares in both PetroReconcavo and 3R Petroleum jump
around 12% in morning trading, making them the top gainers on
Brazil's Bovespa stock index .BVSP , which is near flat
(Reporting by Gabriel Araujo; Editing by Steven Grattan)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))