The boards of Sintana Power Inc and Challenger Power Group PLC have agreed on the phrases of Sintana’s acquisition of your complete issued and to-be-issued share capital of Challenger for an implied diluted worth of round GBP 44.72 million/ CAD 83.63 million ($59.72 million) or 16.61 pence per share.
London-listed Challenger’s major belongings are a 40 p.c stake in Chevron Corp-operated AREA OFF-1 and a one hundred pc possession in AREA OFF-3, each exploration blocks offshore Uruguay.
“Mixed, these characterize a complete license holding of roughly 27,800 sq. kilometers (web to Challenger roughly 19,000 sqkm), making Challenger one of many largest offshore acreage holders in Uruguay and the one ‘junior’ with a place in offshore Uruguay and the broader offshore area (together with northern Argentina and southern Brazil)”, Sintana stated in a press release on its web site.
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Challenger additionally holds legacy exploration belongings in The Bahamas, for which the federal government has not responded to a request for license renewal, Sintana famous.
Sintana, whose inventory trades in Toronto, owns onshore and offshore exploration licenses in Namibia and Colombia’s Magdalena Basin.
“The mixture of Challenger and Sintana is predicted to create a number one exploration platform spanning the Southern Atlantic conjugate margin, with a mixed portfolio providing high-impact publicity to 2 of the world’s at the moment most lively and rising hydrocarbon exploration geographies with a diversified portfolio of licenses at varied ranges of maturity, underpinned by partnerships with majors that present vital monetary and operational assist to succeed in materials milestones”, the assertion stated.
The expanded Sintana would personal pursuits in eight licenses in Namibia – together with the Mopane discovery – and Uruguay, in addition to legacy belongings in The Bahamas and Colombia, Sintana stated.
Below the transaction, Challenger shareholders would obtain about 0.4705 widespread shares of Sintana for every Challenger bizarre share held. Instantly after the completion of the merger, Challenger shareholders would personal roughly 25 p.c of the issued share capital of Sintana, based mostly on the volumes of Sintana and Challenger shares as of October 8.
“The phrases of the acquisition characterize a premium of roughly 44 p.c to the closing worth of 11.5 pence per Challenger share on October 8, 2025; 97 p.c to the amount weighted common worth of 8.41 pence per Challenger share for the three-month interval ended on October 8, 2025; and 96 p.c to the amount weighted common worth of 8.48 pence per Challenger share for the six-month interval ended on October 8, 2025”, Sintana stated.
Charlestown, a shareholder in each Sintana and Challenger, agreed to a mortgage of $4 million for Sintana upon the completion of the merger, Sintana stated.
“The impartial administrators of the board of Challenger intend to advocate unanimously that Challenger shareholders vote in favor of the acquisition and Sintana has acquired irrevocable undertakings from sure of Challenger’s shareholders (together with administrators) to vote their Challenger shares in favor of the acquisition representing, in mixture, roughly 34.2 p.c of Challenger’s issued bizarre share capital as of October 8, 2025”, Sintana stated.
If the mix is consummated, Challenger chief government Eytan Uliel might be Sintana president and government director. Challenger non-executive chair Iain McKendrick might be appointed non-executive director at Sintana, Sintana stated.
Sintana government chair Keith Spickelmier will transition to being non-executive chair after the merger. Sintana president Doug Method will develop into a non-executive director. Non-executive administrators Bruno Maruzzo and Dean Gendron, in addition to chief working officer David Cherry, will depart Sintana.
The events count on to shut the transaction by year-end, topic to customary situations, Sintana stated.
“This really useful merger fulfils all of the strategic intentions of Challenger, creating an entity with a diversified and really high-graded portfolio, and which might be a springboard to additional glorious returns for each units of shareholders”, McKendrick stated in a press release.
To contact the writer, e-mail jov.onsat@rigzone.com
