Parex Resources proposes to acquire GeoPark for $9/share, buys 11.8% stake

[The Colombian flag on a beautiful blue sky]
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GeoPark (GPRK [https://seekingalpha.com/symbol/GPRK]) +11.9% post-market Wednesday after Parex Resources (OTCPK:PARXF [https://seekingalpha.com/symbol/PARXF]) said it submitted a proposal to acquire the company [https://seekingalpha.com/pr/20285329-parex-resources-announces-its-proposal-to-acquire-geopark-and-an-11_8-percent-ownership] for US$9.00/share in cash, a 38% premium to GeoPark’s 90-day, volume-weighted average share price as of October 28.

The proposal values GeoPark (GPRK [https://seekingalpha.com/symbol/GPRK]) at ~US$940 million including net debt, which at strip pricing meaningfully exceeds the value of GeoPark’s Colombian proved plus probable reserves based on its 2024 year-end reserves disclosure.

Following the proposal's rejection by the GeoPark (GPRK [https://seekingalpha.com/symbol/GPRK]) board, Parex (OTCPK:PARXF [https://seekingalpha.com/symbol/PARXF]) said it has acquired an 11.8% ownership position in the company.

"By rejecting the proposal, the GeoPark board denied its shareholders an opportunity to receive cash for their shares at a significant premium. Instead, GeoPark proceeded with an acquisition in Argentina, which entails significant spending, high debt levels, and execution risk," Parex (OTCPK:PARXF [https://seekingalpha.com/symbol/PARXF]) President and CEO Imad Mohsen said.

MORE ON GEOPARK AND PAREX RESOURCES

* GeoPark Analyst/Investor Day - Slideshow [https://seekingalpha.com/article/4831615-geopark-limited-gprk-analyst-investor-day-slideshow]
* GeoPark: A Hedged High-Yield Play In Latin America [https://seekingalpha.com/article/4823662-geopark-a-hedged-high-yield-play-in-latin-america]
* Parex Resources: Recovering From An Unexpected But Normal Challenge [https://seekingalpha.com/article/4814063-parex-resources-recovering-from-an-unexpected-but-normal-challenge]