Colombia’s government-owned petroleum company Ecopetrol announced Thursday it has reached an agreement to purchase approximately 26% of Brazilian energy company Brava, with plans to potentially secure majority ownership of the firm.
According to separate regulatory filings from both companies, the Colombian state enterprise intends to initiate a public tender offer aimed at acquiring sufficient shares to gain control of the Brazilian energy company.
The proposed offer on Brazil’s B3 stock exchange would value Brava shares at 23 reais ($4.60) per share, according to Ecopetrol’s announcement. This pricing represents a premium of 27.8% above Brava’s average share price over the past 90 days based on trading volume.
Brazilian antitrust authorities at CADE must give their approval before the transaction can be finalized.
Following the announcement on Thursday, Brava’s stock price declined by 1%, erasing some of the gains the company had seen earlier in the trading session.
