04:31 AM EDT, 08/20/2024 (MT Newswires) -- Gran Tierra Energy ( GTE ) said Monday that it has agreed to acquire the UK's i3 Energy for about 174.1 million British pounds ($225.4 million) in cash and stock.

Under the terms of the agreement, each i3 Energy shareholder will receive one new Gran Tierra share for every 207 i3 Energy shares held in addition to 0.10 British pounds per i3 Energy share.

Following acquisition, i3 Energy shareholders will as much as 16.5% of Gran Tierra, the company said. i3 Energy Shares will cease trading in both the UK and Canada.

i3 Energy's directors plan to unanimously recommend that shareholders vote in favor of the merger, which is expected to close in Q4, Gran Tierra said.

The company added that the acquisition will diversify Gran Tierra's oil and gas holdings and "create an independent energy company of scale in the Americas with significant production, reserves, cash flows, and development optionality."

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