Brazilian fuel distributor Vibra rejected the merger proposal it received from energy firm Eneva, saying the exchange ratio of the offer was “unjustifiable,” while leaving the door open for new offers.
On Sunday, Eneva had sent an unsolicited offer to Vibra proposing a stock-for-stock merger of equals.
Vibra said its board of directors had analyzed the proposal and believes “that the indicated exchange ratio is unjustifiable.”
“It is evident that the terms proposed for the combination intended by Eneva do not have any attractiveness for Vibra’s shareholders,” the fuel distributor said in a securities filing.
However, the company added that will engage with its advisers for negotiations if it is in Eneva’s interests to “significantly improve the terms presented.”
Before the proposal, Eneva had a market capitalization of 20.7 billion reais ($4.22 billion), according to LSEG Workspace data, while Vibra Energia’s market value stood at 25.9 billion reais.
Source: Reuters.com