Maha Energy proposes carve-out of Brazil's 3R Petroleum onshore assets (updated)
17/01/2024 22:37
(Adds more details on proposal in paragraphs 3-4)
SAO PAULO, Jan 17 (Reuters) - Swedish oil firm Maha
Energy MAHAa.ST said on Wednesday it acquired 5% of Brazil's
3R Petroleum RRRP3.SA and proposed to its board a carve-out of
3R's onshore oil assets, which would then be combined with a
third company.
In an open letter to 3R's board, Maha said Brazilian oil
firm PetroReconcavo RECV3.SA is the "natural candidate" for
the deal, given the extensive existing synergies between its
assets.
Under the proposal, 3R's onshore oil concessions, midstream
and downstream assets would be combined with PetroReconcavo. The
firm would remain in control of its offshore assets and its
shareholders would receive shares in PetroReconcavo.
In the letter, Maha said it believes the market
undervalues both companies and sees "enormous opportunities" to
be captured by them.
3R and PetroReconcavo did not respond immediately to
requests for comment outside normal business hours.
(Reporting by Peter Frontini; Editing by Leslie Adler and Jamie
Freed)
((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))