Colombia's state-owned oil company Ecopetrol has entered into an agreement to acquire approximately 26% of the equity in Brazilian energy company Brava, the two firms disclosed on Thursday in separate securities filings. The stake purchase could lead to Ecopetrol obtaining majority control of Brava, depending on the outcome of a planned follow-on offer.
To secure a controlling shareholding, Ecopetrol said it intends to launch a public tender offer on Brazil's B3 stock exchange. The Colombian company has set the tender price at 23 reais per Brava share - a level the company notes represents a 27.8% premium relative to Brava's 90-day volume-weighted average price.
The filings specify that the completion of the transaction is contingent on approval from Brazil's administrative council for economic defense, CADE. That regulatory review will be required before ownership changes can be finalized.
Market reaction to the announcement was muted: Brava's shares traded about 1% lower as the news circulated, trimming earlier gains recorded on Thursday. The filings and market comments cited an exchange rate of $1 = 4.9990 reais in relation to the pricing information provided.
Both companies framed the move as a step toward a larger strategic position in Brava, with Ecopetrol positioning the proposed tender as the mechanism to reach a sufficiently strong shareholding to exert control. The precise mechanics and the ultimate level of ownership that Ecopetrol will attain depend on investor response to the tender offer and the outcome of the regulatory approval process.
Context and next steps
The plan outlined in the securities filings sets a clear price for shareholders and signals Ecopetrol's intent to consolidate a controlling stake if the tender succeeds and regulatory conditions are met. As the transaction advances through Brazil's regulatory framework, the market will watch trading in Brava's shares and any statements from CADE or the companies involved.