Ecopetrol’s Brazilian subsidiary has launched a voluntary tender offer to acquire over 116 million common shares of Brava Energia, representing about 25% of the target’s outstanding shares, at a price of R$23 per share. The offer price reflects a nearly 21% premium over Brava Energia’s 90-day volume-weighted average price before the announcement. If completed, the transaction would give Ecopetrol a 51% controlling stake in Brava Energia with voting rights, subject to regulatory clearances and other conditions. The tender offer is scheduled to close with an auction on June 25. Separately, Citi analyst Andres Cardona raised Ecopetrol’s price target to $18 from $14 while downgrading the stock to Neutral, citing valuation surge and election-related optimism, though noting substantial downside risk in a bearish scenario.
Citigroup Inc.
Ecopetrol SA ADREcopetrol's subsidiary launched tender offer at 21% premium for 25% of Brava Energia shares, implying acquisition value.