10:03 AM EDT, 07/04/2025 (MT Newswires) -- Azevedo & Travassos Energia on Friday said it signed a binding memorandum of understanding on July 2 to buy Petro-Victory Energy (VRY.V).

As part of the transaction, ATE will complete a capital increase by way of a private placement of approximately 205.5 million units at an issue price of R$0.73 (C$0.18) each, for aggregate gross proceeds of around R$150 million (or C$37.5 million).

ATE will purchase 100% of the issued and outstanding PV shares and will issue 266 million ATE shares to PV's shareholders.

The share consideration represents a premium of approximately C$2.15 to Petro-Victory's shareholders based on the closing price of the company as of the market close on July 2 and based on the target price of R$0.73 (C$0.18) per share for the share consideration, said the company.

In addition, ATE will assume all outstanding debt of Petro-Victory with the estimated enterprise value of the transaction being US$39.5 million (C$53.6 million) including net debt and before considering any valuation for contingent payments.

The completion of the transaction and the subsequent delisting is subject to the approval of both the shareholders of Petro-Victory and the TSXV.

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