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PetroRio announced on Thursday, the 1st, a statement informing the closing of the agreement to acquire the entirety of Dommo Energia, formerly OGX when it was chaired by Eike Batista. Dommo’s shareholders will have the option to receive cash or shares of PetroRio in exchange for their shares, with the exchange ratio set at 1 PRIO3 share for every 20 Dommo shares.
In the negotiation, a memorandum was signed between PetroRio and Prisma Capital, which is managed by João Mendes de Oliveira Castro, Lucas Canhoto, and Marcelo Hallack. Prisma Capital created a stake of almost 52% of Dommo’s total capital.
It is said that the deal includes “the incorporation of all of Dommo’s shares by a company directly or indirectly owned by the buyer,” according to a relevant fact declared by the buyer. PetroRio will pay R$ 1.85 for each Dommo share.
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PetroRio Reaches An Agreement To Buy Dommo (Formerly OGX) For A Price That Could Reach R$ 940 Million
According to an article published in O Globo newspaper, the total value of the operation could range between R$ 690 million and R$ 940 million (considering the value of PetroRio shares on the stock exchange).
The agreement allows for the absorption of Dommo in its entirety, whose only asset at the moment is the right to collect five percent of the profits from the oil fields of Tubarão Martelo and Polvo, located in the Campos Basin. PetroRio already manages them as part of its commercial operations.
It seems that the news of the purchase was leaked before it was officially announced, as Dommo’s shares surged at the end of the trading session and ended the day more than 8% higher than the market open.
According to the research team at Ativa Investimentos, the market had a reasonable expectation that the oil giant would acquire Dommo. “Still, the move could be beneficial for the purchases of tax credits to exceed the amounts effectively paid,” they wrote in a note.
Meet PetroRio
PetroRio, also known as PRIO, is a publicly traded Brazilian company specialized in the effective management of reservoirs and the development of mature fields. 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 S.A. is a company primarily focused on the oil industry. Formerly known as OGX, it also operates in the energy sector. Between 2012 and 2015, the company successfully recovered about 6.5 million barrels of oil from the Tubarão Azul field, located in the Campos Basin. It began oil extraction in the Tubarão Martelo area, also in the Campos Basin, in 2013 and continues to this day.
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