GeoPark enters Venezuela under 25-year deal, Colombia's Gilinski takes control

GeoPark

Mon 15:33

Nov 2 (Reuters) - GeoPark GPRK.N said on Monday it had completed its entry into Venezuela via a 25-year production participation contract, while Colombian financial conglomerate Grupo Gilinski became the oil producer's controlling shareholder after receiving 42.1 million new shares.
The share issuance gives Grupo Gilinski about a 56.3% stake in GeoPark, which could rise to about 58.4% if certain milestones under the transaction are met.

Here are more details:
GeoPark's production participation contract covers Venezuela's Bare Block, where it will act as operator, the company said
GeoPark acquired Grupo Gilinski's remaining 95% interest in the Bare Block holding company by issuing about 42.1 million new shares to the financial conglomerate
The oil producer will fund 100% of capital expenditure under approved work programs and hold a 65% net participating interest
It plans to take operational control of the block before the end of 2026 and begin financially consolidating the asset once it does so
Under the deal terms, Grupo Gilinski must launch a tender offer within 90 days to acquire GeoPark shares it does not already own at $12.22 per share, for aggregate consideration of up to $100 million
Grupo Gilinski is also entitled to nominate at least five directors to GeoPark's board as long as it owns at least 50% of the company's outstanding shares

 (Reporting by Varun Sahay in Bengaluru; Editing by Shreya Biswas)
 ((Varun.Sahay@thomsonreuters.com;))