06:41 AM EDT, 08/20/2024 (MT Newswires) -- Gran Tierra Energy ( GTE ) late on Monday said it will acquire i3 Energy ( ITEEF ) in a cash-and-stock deal worth around 174.1 million British pounds.

i3 Energy ( ITEEF ) shareholders will receive one new Gran Tierra share for every 207 i3 Energy ( ITEEF ) shares held and 10.43 pence cash per i3 Energy ( ITEEF ) share, as well as a cash dividend of 0.2565 pence per i3 Energy ( ITEEF ) share in lieu of the ordinary dividend for the three-month period ending Sept. 30.

Following completion of the acquisition, i3 Energy ( ITEEF ) shareholders will own about 16.5% of Gran Tierra.

The acquisition implies a value of 13.92 pence per i3 Energy ( ITEEF ) share, a premium of 49% to the closing price of i3 Energy ( ITEEF ) shares on Aug. 16 and a premium of 49.7% to the volume-weighted average price of i3 Energy ( ITEEF ) shares for the 30-day period ended Aug. 16.

Following deal completion, Gran Tierra is expected to transfer the entire issued share capital of i3 Energy ( ITEEF ) to its subsidiary Gran Tierra EIH, the holding entity for Gran Tierra's Colombian assets.

i3 Energy ( ITEEF ) shares will also be cancelled from trading on the AIM market of the London Stock Exchange and delisted from the TSX.

"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," said Gran Tierra President and CEO Gary Guidry.

The acquisition is expected to become effective in the fourth quarter.

Gran Tierra's share price at last look fell 1.6% to US$8.39 in U.S. pre-market trading on Tuesday.