A company undergoing transformation
Since Starboard became the main shareholder of Maha at the end of September, it has started a transformation of the company. So far, two major transactions have been announced: the sale of Maha Brazil, which includes Tie and Tartaruga; and the acquisition of DBO 2.0, which adds two offshore O&G assets in Brazil. It has also carried out a directed share issue that strengthened the finances and broadened the ownership base, and it is collecting bids for the US assets. We believe this is only the beginning.

Cash in line with market cap reduces the downside risk
Post proceeds for the sale of Maha Brazil and minus the issued bank debt, Maha will have a cash position that is largely in line with its current market cap. It is still uncertain what the proceeds from the divestment will be used for, but downside in the share should nevertheless be curbed. We also believe the operational risk in DBO’s assets, which are operated by 3R Offshore – in turn 85% owned by publicly listed 3R Petroleum – is lower than it was for Tie and Tartaruga.
 
First take of fair value is SEK 13-16
We leave estimates unchanged as no transaction has yet closed and as we do not have sufficient information to add DBO’s assets to our forecasts. We do, however, adjust the number of shares for the rights issue in mid-December and fine-tune our fair value to reflect our first take of the value following all transactions. Based on independent NPV10 calculations, we reach a potential value for Maha of USD 260-320m or SEK 13-16 per share (based on the total number of shares including the shares used to pay for DBO). Our previous fair value range was SEK 21-23.

Read the full report, published 30-01-2023 kl. 20:15: https://docs.penser.se/a/3447/Maha230131.pdf
This is a press release from Erik Penser Bank. Read more here https://epaccess.penser.se/