i3 Energy PLC said on Thursday that the scheme document is being distributed to shareholders regarding its planned acquisition by Gran Tierra Energy Inc.

It noted that the scheme document’s contents include the scheme’s full terms and conditions; an expected timetable of principal events; and details of the actions to be taken by i3’s shareholders.

i3 is a Westhill, Scotland-based oil and gas company, which has assets in the UK and Canada. Gran Tierra is an oil and gas exploration and production company focused on the acquisition and development of energy assets in South America.

Both companies announced on August 19 that they had reached a final agreement on Gran Tierra’s proposal to acquire the entire share capital of i3.

Gran Tierra said at the time that the offer implied an equity value of £174.1 million for i3 Energy.

Under the terms of the acquisition, each i3 Energy shareholder will be entitled to receive one New Gran Tierra share per every 207 i3 Energy shares held, plus 10.43 pence cash per i3 Energy share.

In addition, each i3 Energy shareholder will be entitled to receive a cash dividend of 0.2565 pence per i3 Energy Share in lieu of the ordinary dividend in respect of the three-month period ending September 30.

The acquisition implies a value of 13.92 pence per i3 Energy share.

The scheme for the acquisition requires approval by i3 shareholders at its court meeting and general meeting, both of which will be held on October 7.

i3 Energy reiterated that it considers the terms of the takeover deal to be fair and reasonable, not to mention ‘in the best interests of the i3 Energy shareholders as a whole’. Its directors therefore recommend unanimously that shareholders vote in favour of the scheme.

i3 Energy closed 1.1% lower at 12.50 pence on Thursday evening in London. Gran Tierra shares closed flat at 630.00p each.

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