(WO) — Gran Tierra Energy has announced plans to acquire i3 Energy plc in a cash and stock deal valued at $225 million.
The transaction, which will be completed under a court-approved process, will see Gran Tierra offer 10.43 pence in cash per i3 Energy share and one Gran Tierra share for every 207 i3 Energy shares.
i3 Energy shareholders will also receive an additional dividend of 0.2565 pence per share. Following the acquisition, i3 Energy shareholders will own up to 16.5% of Gran Tierra.
The deal is expected to create a larger, more diversified energy company with a stronger presence across the Americas, increasing Gran Tierra’s production and reserves while expanding geographic and product diversity.
With this acquisition, Gran Tierra aims to increase shareholder value, optimize capital allocation and improve trading liquidity. The combined company will have a significant presence in Colombia, Canada and Ecuador.
Completion of the deal will result in the delisting of i3 Energy shares from the AIM market of the London Stock Exchange and the TSX. Gran Tierra will also explore further opportunities for consolidation and growth, leveraging its strengthened balance sheet and extensive drilling inventory.
