Maha Capital is considering spinning off the oil operations to shareholders
The finance company Maha Capital intends to evaluate a possible separation of its oil and gas operations, including an indirect 24 percent stake in Venezuelan PetroUrdaneta, from the fintech operations.
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A split could result in two independent companies with different operational focuses, capital allocation and investor profiles, the company says.
As part of the process, Maha Capital is considering several strategic alternatives, including a potential listing of the oil operations in the form of a spin-off to shareholders. Such a transaction is conditional on, among other things, board decisions, regulatory requirements and market conditions.
Chairman Paulo Thiago Mendonça says that a separation aims to create two pure-play companies and increase transparency as well as enable a fairer valuation of each business.
“With this potential separation, we are creating two distinct, pure-play companies, each operating in fundamentally different industries, and with its own unique characteristics, growth drivers and opportunities. The board believes that an evaluation of the possibility of spinning off the company’s oil and gas assets in Venezuela into a new independent company will optimize both companies’ operational capacity, while increasing transparency and making it easier for investors to more accurately value each business,” says Paulo Thiago Mendonça, chairman of Maha Capital, in a comment.
As a result, the change of company name will be postponed, a decision that has already been made by the shareholders to implement. The background is that the company wants greater clarity regarding a possible split.
