UK's i3 Energy surges on $226 mln takeover offer from Canada's Gran Tierra Energy

I3 Energy

20/08/2024 09:19

Aug 20 (Reuters) - Shares of i3 Energy  I3E.L  jumped as
much as 33.7% on Tuesday morning after Canada's Gran Tierra
Energy  GTE.TO  offered to buy the British oil and gas producer
in a deal valued at 174.1 million pounds ($226.23 million).
    The deal has an implied valued of 13.92 pence per i3 Energy
share, which represents a premium of 49% to the London-listed
company's Aug. 16 closing price. 
    "This looks to be at a hefty premium to the prevailing I3E
price...deal makes sense for GTE as it diversifies the portfolio
outside South America and gives it a hefty boost to reserves and
production," said Panmure Liberum analyst Ashley Kelty.
    i3 Energy shares were up 26.27% at 12.16p at 0804 GMT.
    With the deal, Gran Tierra Energy aims to create an
independent energy company of scale in the Americas, with
increased production, reserves, cash flows, and development
options across Canada, Colombia, and Ecuador.
    The combined entity would have about 1.4 million net acres
in Colombia, 138 thousand net acres in Ecuador and 584 thousand
net acres in Canada.
    Once the deal is completed, i3 Energy shareholders are
expected to own up to 16.5% of the combined company and its
shares will be cancelled from trading on the AIM market of the
London Stock Exchange and delisted from the Toronto Stock
Exchange.
    The offer also contains a "mix and match" facility that will
allow i3 Energy shareholders vary the proportions in which they
receive cash and new Gran Tierra shares.
    
($1 = 0.7696 pounds)

 (Reporting by Arunima Kumar in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))