Gran Tierra Energy shareholders approved the sale of its Colombian and Ecuadorian businesses to Maurel & Prom. The approximately 1.33 billion dollar transaction includes debt-related adjustments, while Gran Tierra expects about 315 million dollars in net cash. The 9 October vote advances an agreement announced in August; completion still depends on regulatory approvals and other conditions.
Gran Tierra Energy, an oil and gas producer, secured shareholder approval on 9 October to sell its Colombian and Ecuadorian businesses to energy producer Maurel & Prom. The approximately 1.33 billion dollar transaction includes debt-related adjustments. The agreement was announced on 5 August. The shareholder vote advances that disposal while regulatory approvals remain outstanding.[1], [2]
Gran Tierra expects about 315 million dollars in net cash. Approximately 250 million dollars is payable when the transaction completes, with another 65 million dollars due 364 days later. Management expects the company to become debt-free after completion. The company has obtained the required consents from holders of its senior secured amortising notes, which mature in 2031.[1]
The asset sale received 19,351,115 votes in favour, 32,492 against and 7,328 abstentions. In a separate non-binding vote on transaction-related executive compensation, votes against numbered 9,658,068, exceeding the 9,557,007 votes in favour; 175,860 abstained. Gran Tierra targets completion by 31 December, subject to regulatory approvals in Colombia and Ecuador and other customary conditions.[1]
