Ecopetrol Seals $1.2B Deal for 51% of Brazil's Brava Energia
EC has more than doubled off its 52-week low of $8.57.
Summary
Ecopetrol completed its acquisition of a controlling 51% stake in Brava Energia for approximately US$1.2 billion, funded via an intercompany loan. The deal combines the 25% acquired through the tender offer with an additional 26% from the share purchase agreement, giving Ecopetrol control of a Brazilian producer with 459 mmboe of proved reserves and 78.8 kboed of average daily production. Brava generated US$2.34 billion in revenue and US$1.05 billion in EBITDA over the last twelve months. This follows the CVM appeal win in July and the successful auction on August 5, marking the final step in a multi-month acquisition process. The transaction adds significant scale in Brazil and diversifies Ecopetrol's portfolio beyond Colombia. A conference call on August 25 will provide further details on integration and financial impact.
At the time of this announcement, EC was trading at $17.71 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $35.3B. The 52-week trading range was $8.57 to $17.75. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: PR Newswire.