i3 Energy PLC (LSE:I3E) operates as an oil and gas company with a low-cost, diversified production base in Canada's Western Sedimentary Basin and appraisal assets in the North Sea. The company focuses on optimizing its fully owned asset base and acquiring long-life, low-decline conventional production assets to drive future growth.
On 20 August 2024, i3 Energy confirmed that it has received and endorsed a firm offer from Gran Tierra Energy Inc of The offer values i3 Energy at approximately £174 million, reflecting a premium of around 49% compared to the share price at the end of the previous weekThe proposed terms of the offer include one new Gran Tierra share for every 207 shares of i3 Energy, plus an additional cash amount for each share.
As part of the transaction, i3 Energy shareholders will also receive a cash dividend for the three months ending September 2024This offer follows i3 Energy’s strategic decisions in recent months, including a notable sale of royalty assets that generated significant cash inflows.
The company has demonstrated strong performance in the first quarter of 2024, with a marked improvement in cash flowThis follows the company's decision to explore strategic options in response to unsolicited approaches received in the first quarter, ultimately leading to the endorsement of the Gran Tierra offer.
The acquisition by Gran Tierra Energy is poised to reshape i3 Energy’s trajectory, as it continues to expand its production base and develop its assets in the hydrocarbon sectorThe transaction is expected to finalize on 23 October 2024, with i3 Energy’s shares scheduled to be delisted from AIM on 24 October 2024.