Ecopetrol resumes tender offer for 25% stake in Brava Energia at R$23

Ecopetrol's resumed bid for a quarter of Brava Energia marks the Colombian oil giant's most aggressive push yet into Brazil's fast-growing offshore oil sector.

Ecopetrol S.A. resumed a voluntary tender offer to acquire 116.1 million common shares of Brava Energia, or about 25% of the Brazilian oil producer's share capital, at R$23 apiece — a 20.9% premium to the 90-day average price that values the stake at about R$2.67 billion.

The Colombian state-controlled energy giant's Brazilian subsidiary, Ecopetrol Investimentos do Brasil LTDA, published a revised offer document on the B3 exchange Sunday after incorporating recommendations from the Comissão de Valores Mobiliários, Brazil's securities regulator, in Official Letter No. 160/2026/CVM/SRE/GER-1. The regulator's feedback prompted revisions to the offer terms before the tender was resumed.

The tender offer, known as an OPAV, is scheduled to remain open until Aug. 5, when an auction will take place. The transaction remains subject to regulatory approvals and conditions precedent disclosed in the offer document, Ecopetrol said in a statement. The company expects to disclose the results of the OPAV together with any other material developments.

The deal would deepen Ecopetrol's presence in Brazil, where it already holds drilling and exploration operations and, through its ISA subsidiary, holds leading positions in power transmission across Brazil, Chile, Peru and Bolivia. Ecopetrol, Colombia's largest company with more than 19,000 employees and a $33 billion market capitalization, has gained 68% year-to-date and trades below its fair value, according to InvestingPro analysis.

For Brava Energia shareholders, the offer represents a significant premium that could drive near-term price appreciation. The acquisition would give Ecopetrol a controlling stake in a company with assets in Brazil's offshore and onshore basins, adding to its international portfolio that already includes operations in the U.S. Permian basin, the Gulf of Mexico and Mexico.

Ecopetrol posted first-quarter earnings per share of 2,190.69 Colombian pesos, beating the 1,457.82-peso consensus, on revenue of 28.6 trillion pesos that also exceeded estimates of 23.5 trillion pesos. The company maintains a 4% dividend yield and has paid dividends consistently for 10 consecutive years. Its stock trades below fair value, placing it among undervalued opportunities in the energy sector, according to InvestingPro.

Brava Energia shares rose 2.1% on B3 following the announcement, while Ecopetrol's NYSE-listed American depositary receipts slipped 0.37% to $16.03. The transaction comes as Ecopetrol also pursues renewable energy expansion, having recently completed the acquisition of a 49% interest in two wind energy projects in Colombia's La Guajira Department for about $25.5 million, with a combined capacity of 259 megawatts.

This article is for informational purposes only and does not constitute investment advice.