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A PetroRio launched this Thursday, 01, a note informing the closing of the agreement to acquire the entirety of Dommo Energia, former OGX at the time it was chaired by Eike Batista. Dommo shareholders will have the option to receive in cash or PetroRio shares in exchange for their shares, with the exchange ratio being 1 PRIO3 share for every 20 Dommo shares.
During the negotiation, a memorandum was signed between PetroRio and Capital Prism, which is managed by João Mendes de Oliveira Castro, Lucas Canhoto and Marcelo Hallack. Prisma Capital created a stake almost equal to 52% of Dommo's total capital.
The deal is said to include “the merger of all Dommo shares into a company directly or indirectly owned by the buyer”, according to the material fact declared by the buyer. PetroRio will pay R$ 1,85 for each Dommo share.
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PetroRio reached an agreement to buy Dommo (formerly OGX) for a price that could reach R$ 940 million
According to an article published in the newspaper O Globo, the total value of the operation could be between R$ 690 million and R$ 940 million (taking into account the value of PetroRio's shares on the stock exchange).
The agreement allows for the absorption of all of Dommo, whose only asset at the moment is the right to collect five percent of the profits from the Tubarão Martelo and Polvo oil fields, located in the Campos Basin. PetroRio already manages them as part of its commercial operations.
It seems that the news of the purchase was released before it was officially announced, as Dommo's shares soared in late trading and ended the day more than 8% higher than the open market.
According to the research team at Ativa Investimentos, the market had a reasonable expectation that the oil giant would buy Dommo. "Still, the movement may be good for purchases of tax credits to exceed the amounts actually paid", they wrote in a note.
Get to know PetroRio
PetroRio, also known as PRIO, is a publicly traded Brazilian company specializing in effective reservoir management and mature field development. Its main business activities include the production of oil and gas, as well as the investment and recovery of production assets.
About Dommo Energia
Dommo Energia SA is a company whose main focus is the oil industry. Formerly known as OGX, it also operates in the energy sector. Between 2012 and 2015, the business successfully recovered around 6,5 million barrels of oil from the Tubarão Azul field, located in the Campos Basin. Oil extraction began in the Tubarão Martelo area, also in the Campo Basin, in 2013 and continues to this day.
