FINWIRES · TerminalLIVE
FINWIRES

Ecopetrol Expands Brazil Push With Brava Stake Deal, Tender Offer Ahead

-- Ecopetrol (EC) agreed to acquire a 26% stake in Brava Energia and plans a $23-per-share tender offer to secure a 51% controlling interest, the company said Thursday.

The company signed a share purchase deal on April 23 with Jive, Yellowstone and Bloco Somah Printemps Quantum, key Brava shareholders, to acquire 120,813,490 shares representing about 26% of its equity, it said.

Brava was formed in 2024 after 3R Petroleum Oleo e Gas merged with Enauta Participacoes, creating a Brazil-focused oil and gas player with operations across offshore and onshore basins.

Brava reported $806 million in EBITDA for 2025 with a 39% margin and ranks as the second-largest independent oil company listed in Brazil by reserves and production, the company said.

Ecopetrol will complete the transaction only after meeting conditions, including Brazil's Administrative Council for Economic Defense approval, financing consents, and acquiring enough shares to reach a 51% voting stake, Ecopetrol added.

The company plans a voluntary tender offer on Brazil's B3 exchange at 23 Brazilian reais ($4.58) per share to acquire additional equity and reach majority control, the company added.

The offer implies a 27.8% premium over Brava's 90-day volume-weighted average price and will extend on equal terms to all shareholders under applicable regulatory rules, the company said.

Ecopetrol expects to fund the acquisition through a bridge loan, subject to closing conditions and regulatory approvals tied to the transaction, it said.

The deal would add proportional reserves from Brava's 459 million barrels of oil equivalent reported at year-end 2025 under Petroleum Resources Management System standards, Ecopetrol added.

Ecopetrol would also gain a proportional share of Brava's 2025 output of about 81,000 barrels of oil equivalent per day, boosting production stability and cash flow, it said.

Ecopetrol said the deal will expand its footprint in Brazil, diversify assets in a high-growth region, and strengthen its international portfolio once it meets all closing requirements.

Price: $14.01, Change: $-0.42, Percent Change: -2.91%

Related Articles

Mining & Metals

RBC Provides its Canadian Technology Q1/CY26 Preview

RBC Capital Markets provided a first-quarter earnings preview for stocks in its Canadian Technology coverage universe on Friday.The S&P/TSX Info-Tech sub-sector had its "worst start to the year" since 2022, due to the continued downward re-rating of software stocks on concerns regarding AI disruption, noted RBC.While RBC expects Q1 results to be "largely in line" with consensus and believes the "magnitude of the pullback in software valuations is an overreaction," it believes sentiment is unlikely to materially change in the short term.Even though RBC anticipates "slightly improved organic growth" for the average stock in its coverage this quarter, the market appears "risk-averse and may largely ignore positive surprises and disproportionately penalize negative surprises," in light of the market sensitivity regarding AI disruption and uncertainty regarding the macro environment, said RBC.Among its covered stocks, RBC believes the "best-positioned stocks" for calendar Q1 results are Celestica (CLS.TO), Shopify (SHOP.TO), Constellation Software (CSU.TO), and Kinaxis (KXS.TO).RBC believes Celestica will report Q1 earnings above consensus and increase FY26 guidance, given hyperscaler capex continues to increase, along with strong network switch and AI server demand, against Celestica's historically conservative outlook, added RBC."Given the strong 36% YTD rally in Celestica's shares, Q1 results may not be a catalyst for the stock," said RBC. "Even so, we believe Celestica's strong growth momentum, ongoing margin expansion, and mix shift to more structurally attractive segments of the market are likely to help sustain Celestica's valuation to remain above peers and toward the high end of its historical range."For Shopify, RBC expects "solid" Q1 results and Q2 guidance slightly above consensus estimates.U.S. e-commerce spending strengthened through Q1, noted RBC which it believes implies revenue growth accelerates sequentially, with Q1 revenue and adj. EPS likely slightly above consensus."While the valuation of Shopify's shares has re-rated down with the YTD pullback in software stocks, Shopify's fundamentals remain solid, in our view, and we expect strong growth to drive shareholder returns over the long term," said RBC.RBC expects Constellation's shares to modestly rally following Q1 results."With the stock trading near multi-year valuation lows, we see investor sentiment improving, given Q1 slightly ahead of consensus, TTM free cashflow up 25%, and annualized Q1 capital deployed on acquisitions likely tracking to a new record," said RBC. "We see Constellation's valuation as compelling, compared to our forecast for a 17% adj. EBITDA CAGR over the next 3 years."RBC believes Kinaxis's shares may "slightly rally" following Q1 results. It expects Kinaxis to report "solid" Q1 results, slightly above consensus, with continued growth re-acceleration and likely healthy bookings."With Kinaxis seeing reaccelerating growth, but trading at discounted valuation levels, we see compelling risk-reward on the shares," added RBC. "Moreover, ramping share buybacks may provide a floor for the stock."Price: $565.60, Change: $+28.12, Percent Change: +5.23%

$AIF.TO$CGY.TO$CLS.TO$CSU.TO$CVO.TO$GIB-A.TO$ISC.TO$KXS.TO$LMN.V$OTEX.TO$SHOP.TO$TOI.V$VHI.TO
Sectors

Sector Update: Health Care Stocks Decline in Afternoon Trading

Health care stocks were lower Friday afternoon, with the NYSE Health Care Index and the State Street Health Care Select Sector SPDR ETF (XLV) each shedding 1.4%.The iShares Biotechnology ETF (IBB) decreased 0.7%.In sector news, the US Food and Drug Administration said it was launching regulatory actions to back the development of psychedelic therapies to treat mental illness. The move builds on President Donald Trump's recent executive order directing the Department of Health and Human Services to accelerate access to treatments for people with serious mental illness, the FDA said.In corporate news, HCA Healthcare's (HCA) Q1 results exceeded market expectations, but the hospital operator said it did not see its usual seasonal lift in admissions amid declines in respiratory activity. Its shares dropped 9%.Organon (OGN) shares surged 28% amid a report that India's Sun Pharmaceutical Industries was planning a $13 billion bid for the company.Compass Pathways (CMPS) shares rose 5% after it said Friday the US Food and Drug Administration has granted its rolling review request for its new drug application and selected COMP360 for the Commissioner's National Priority Voucher program for treatment-resistant depression.

$CMPS$HCA$OGN
Sectors

Sector Update: Consumer Stocks Mixed Friday Afternoon

Consumer stocks were mixed Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) down 0.3% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 0.8%.In sector news, US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday. The main sentiment index fell 6.6% to 49.8 from last month. The consensus in a Bloomberg poll expected the April reading to be revised to 48.5 from the preliminary estimate of 47.6.In corporate news, Procter & Gamble (PG) reported stronger-than-expected fiscal Q3 results on Friday, while the consumer goods giant reiterated its full-year outlook. Shares rose 3.2%.Charter Communications (CHTR) reported Q1 earnings below market estimates as revenue declined annually, driven by weakness in the residential video and Internet segments. Shares slumped 22%.Stellantis (STLA) plans to direct the bulk of its future investment toward Jeep, Ram, Peugeot, and Fiat under Chief Executive Antonio Filosa's turnaround strategy, Reuters reported. The carmaker is set to unveil the long-term plan in May, focusing on strengthening its most profitable global brands while streamlining its sprawling 14-brand portfolio, the industry's largest, the report said. Stellantis shares were down 3%.

$CHTR$PG$STLA