i3 Energy PLC (AIM: I3E, TSX: ITE, OTC: ITEEF) has confirmed it has received and recommended a firm offer from Canada’s Gran Tierra Energy Inc (TSX: GTE, LSE: GTE, NYSE-A: GTE, ETR: G1P).
The offer values i3 Energy at approximately £174 million, equivalent to 13.92p per share, representing a premium of about 49% compared to last week’s closing price.
Under the terms of the offer, i3 shareholders will receive one new Gran Tierra share for every 207 i3 shares, plus 10.43p in cash per share. Additionally, i3 shareholders will receive a cash dividend for the three months ending September 2024.
Gran Tierra stated that it believes the offer is fair and does not intend to increase it unless a competing bid emerges.
The directors of i3 have unanimously recommended the offer, and with other irrevocable acceptances, Gran Tierra has secured over 33% support for the deal.
Majid Shafiq, CEO of i3, commented, “We believe this acquisition presents an exceptional opportunity for i3 Energy’s shareholders. It reflects the culmination of a comprehensive process to maximize shareholder value and offers significant upside potential.”
If the deal is completed, i3 shareholders will own 15% of the enlarged company.
Gary Guidry, CEO of Gran Tierra, added, “By integrating these high-quality, operated assets—characterized by low-decline production, large resources, and a substantial land base—we are not only enhancing our asset portfolio but also aligning with our long-term strategic vision.”
