Maha Energy: Makes acquisition in 3R Petroleum and proposes strategic changes - ABG

Acquires ~5% of 3R Petroleum for USD 69m
In line with M&A focused growth strategy
Proposes several strategic changes


Acquires ~5% of 3R Petroleum

Yesterday after close, Maha Energy (commissioned) announced that it has acquired 5% of the Brazilian oil and gas company 3R Petroleum for a total consideration of USD 69m. 3R Petroleum is a listed and Brazilian focused E&P company with a focus on redevelopment of mature production fields located both onshore and offshore. Based on the latest share price in 3R, the transaction seems to have been completed at a 3-4% premium. The acquisition will be conducted in two steps. In the first step Maha has entered into a derivative instrument giving economic exposure to 5% of 3R Petroleum. Subsequently and as a second step, Maha intends to replace the derivative instrument with a direct equity interest in 3R.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/maha-energy/Equity-research/2024/1/maha-energy---makes-acquisition-in-3r-petroleum-and-proposes-strategic-changes/