Canada and North Sea-focused i3 Energy (AIM:i3E) has confirmed it has received a £174.1million bid from a Canadian rival.
Gran Tierra Energy (TSX:GTE) said the deal will “create an independent energy company of scale in the Americas” combining assets in Canada, Colombia and Ecuador.
Gran Tierra did not mention i3’s 75% stake in the Serenity field discovery in the Outer Moray Firth.
The bid marks a 49% premium over the closing price of 9.34p per i3 Energy Share on 16 August 2024.
Commenting on the acquisition, Gary Guidry, president and chief executive of Gran Tierra said the deal “marks a significant milestone in diversifying our portfolio while strengthening our asset base”.
He added: “By integrating these high-quality, operated assets, including low-decline production, large resources in place and a substantial land base, we are not only enhancing our asset base but also aligning with our long-term strategic vision.
“We are excited to welcome the talented Canadian team to our company, as their expertise and dedication will be invaluable in driving our continued success. This acquisition is a testament to our commitment to sustainable and profitable growth and delivering consistent value to our shareholders.”
Majid Shafiq, chief executive of i3, said: “We believe that the acquisition presents an exceptional opportunity for i3 Energy’s shareholders.
“The acquisition represents the culmination of a thorough process to realise the maximum value available for shareholders and offers significant upside potential; it expedites the realisation of fair value, with a cash premium and incremental upside through continued ownership in the combined group, without necessitating additional capital investment, time, or operational risk.
“This business combination will significantly enhance scale, thereby improving capacity to drive growth, production, and cash flows for the benefit of all shareholders and local stakeholders.”
I3 Energy, which has an office in Westhill, completed a farm-out of a 25% working interest in its Serenity field to Europa Oil and Gas (AIM:EOG) in 2022.