i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) has confirmed that it has received and recommended a firm offer from Canada's Gran Tierra Energy Inc (TSX:GTE, LSE:GTE, NYSE-A:GTE, ETR:G1P).
In total, the offer price is the equivalent of 13.92p, valuing i3 at roughly £174 million, a premium of around 49% to the end of last week.
Terms of the offer are one new Gran Tierra share for every 207 i3 plus 10.43p in cash for each share.
Shareholders in i3 also receive a cash dividend for the three months to end September 2024.
Gran Tierra said it considers the offer fair and will not raise it unless another party gets involved.
i3 directors have unanimously recommended the offer, which, with other irrevocable acceptances, gives Gran Tierra over 33% support.
Majid Shafiq, i3’s chief executive, 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.”
I3 shareholders will own 15% of the enlarged company if the deal goes through.
Gary Guidry, Gran Tierra’s CEO 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.”