Enauta and 3R Petroleum have successfully completed their merger, a strategic move that consolidates their positions in the Brazilian oil and gas sector.
The merger is set to enhance the operational capabilities and market presence of the combined entity.
The companies have confirmed the fulfilment of all necessary conditions for the merger, which began in early April and concluded on 31 July 2024.
The transaction included conditions necessary for merging shares of a third company, Maha Holding, into 3R Petroleum and Enauta shares, as per the protocol.
In April, following the initial merger announcement, Enauta and 3R Petroleum signed a memorandum of understanding, which later received the green light from their boards and Brazil’s Administrative Council for Economic Defense (CADE).
According to the merger terms, Enauta's shareholders are allocated 213,623,971 new common shares of 3R Petroleum, representing 45.98% of its capital.
Furthermore, Maha Holding's sole quota holder has been granted 10,081,840 shares in 3R Petroleum, which accounts for 2.17% of the latter's share capital. At an extraordinary general meeting held on 26 June 2024, 3R Petroleum ratified its new board of directors and bylaw amendments.
With the inclusion of existing shares, Maha's total holding in the merged entity will be around 22 million shares, equating to 4.76%.
The registration of 3R Petroleum shares to Enauta and Maha Holding shareholders is scheduled for 5 August.
Maha Energy CEO Kjetil Solbraekke commented on the merger's completion, stating: “In just a couple of months, our vision for a consolidation within the Brazilian oil market has become a reality. Maha now holds 4.76% of the shares in one of the leading and most diversified independent companies operating in the Latin American oil and gas chain, with a robust cash flow generation and a balanced portfolio, and high growth potential over the next five years, with resilience to price cycles and high competitiveness for expansion.”
Meanwhile, Enauta has also announced the completion of all subsea systems and line connections for the Atlanta floating production storage and offloading (FPSO) vessel poised to commence production at the Atlanta field in the Santos Basin, replacing the FPSO Petrojarl I.
