Petro-Victory and ATE merging to increase shareholder value through growth and asset diversification

Petro-Victory Energy and Azevedo & Travassos Energia (ATE) have signed a memorandum of understanding for a merger. ATE will acquire Petro-Victory, issuing new shares to Petro-Victory’s shareholders and assuming its debt. Shareholders will receive a 10% gross overriding royalty on new production, with an enterprise value estimated at $39.5m.

The merger aims to increase shareholder value through growth and asset diversification. ATE will undertake a capital increase of 205.48 million units at 0.73 reais per unit, totaling 150m reais. Petro-Victory shareholders will convert their claims into new common shares, with the transaction subject to approvals and audits by both parties.

The transaction is contingent on completing the capital increase by 12 July 2025, with a possible extension, and negotiating a definitive agreement within 120 days post-capital increase. Due diligence, corporate, governmental approvals, and TSXV consent are required. Petro-Victory will apply to delist from TSXV post-acquisition.

In April 2025, Petro-Victory acquired Capixaba Energia with BlueOak Investments. The merger with ATE further solidifies Petro-Victory’s position in Brazil’s onshore energy sector. “Petro-Victory and ATE to merge for growth and asset diversification” was reported by Offshore Technology, a GlobalData-owned brand.

Read more at Yahoo Finance: Petro-Victory and ATE to merge for growth and asset diversification