Maha Energy has acquired a derivative instrument, giving Maha exposure to 11,999,248 shares representing five percent of the capital stock of 3R Petroleum Óleo e Gás S.A. for a total consideration of approximately USD 69 million. Maha has today informed 3R Petroleum about this acquisition.

Maha’s acquisition of shares in 3R Petroleum is conducted in two steps. In the first step, Maha has entered into, with a financial institution, a derivative instrument (equity linked note), which provides Maha with an economic exposure to 11,999,248 shares representing 5% of the capital stock of 3R Petroleum. Subsequently and as a second step, the purpose is to replace the derivative instrument with a direct equity interest.

“This represents a strategically motivated, long-term investment on our part. The management and the board of directors in Maha have been intimately involved in the founding and early growth of 3R Petroleum. Consequently, we possess a profound understanding of the value residing within 3R Petroleum's assets. Maha's investment strategy in 3R Petroleum outlines the initiation of a consolidation plan within the Brazilian onshore segment, followed by the separation of 3R Petroleum's offshore assets,” says Kjetil Solbraekke, CEO of Maha Energy.

KeyFacts Energy Industry Directory: Maha Energy