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Brazil's Enauta, 3R sign memorandum on proposed merger
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Brazil's Enauta, 3R sign memorandum on proposed merger
Apr 10, 2024 4:39 AM

SAO PAULO, April 10 (Reuters) - Brazilian energy

companies Enauta and 3R Petroleum have

signed a memorandum of understanding to go ahead with a proposed

merger, a securities filing showed on Wednesday.

Oil and gas producer Enauta presented an offer to combine

with fellow oil firm 3R earlier this month which halted 3R's

then-ongoing talks for a tie-up with rival PetroReconcavo.

The deal could create, according to Enauta, a company

potentially able to produce more than 100,000 barrels of oil

equivalent per day.

The memorandum of understanding states that Enauta and 3R

Petroleum have a 30-day period, which can be extended for

another month, to discuss the potential deal and perform due

diligence with exclusivity.

Under the all-stock-deal, Enauta would be incorporated by 3R

and its shareholders would receive new shares of 3R, the

companies said. Shareholders in 3R would hold 53% of the

combined company while Enauta investors would own 47%.

The memorandum also established that 3R minority shareholder

Maha Energy, which had been leading efforts for a

potential deal with PetroReconcavo, would receive an additional

2.2% stake of the combined firm.

Sweden-based Maha currently holds an extra 15% stake in a

subsidiary of 3R, and would exchange it to new shares of 3R

itself after the proposed merger.

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