9th Oct 2025 10:21
(Alliance News) - Challenger Energy Group PLC on Thursday said it agreed to a GBP45 million all-share offer by petroleum and natural gas explorer Sintana Energy Inc.
Challenger Energy, focused on offshore Uruguay, said the deal "fulfils all the strategic intentions" of the company.
For each Challenger share owned, shareholders will receive 0.4705 of a new Sintana share. It will mean that Challenger shareholders own roughly 25% of the enlarged firm.
Sintana is listed in Toronto. Based on a closing price of CAD0.66 on Wednesday, the deal values Challenger at CAD84 million, around GBP45 million. Sintana has a market capitalisation of CAD250.1 million.
The 16.61p per share valuation for each Challenger share is a 44% premium to its 11.50p closing price on Wednesday.
Challenger shares rose 17% to 13.50 pence each in London on Thursday morning. It has a market capitalisation of GBP33.6 million.
Sintana plans to list on AIM after the acquisition is completed, while also maintaining its listings in Toronto and the OTCQX market in the US. The listing on AIM is expected in the fourth quarter of the year.
Sintana has a primary portfolio of assets in Namibia, including its 4.9% interest in PEL 83, or the Mopane discoveries, operated by Lisbon, Portugal-based Galp Energia SGPS SA. The company also has "indirect interests in four other Namibian offshore blocks and one Namibian onshore block".
"Sintana has also entered into a heads of terms which provides for the acquisition of a 5% indirect interest in KON-16 in Angola's Kwanza Basin and Sintana has a legacy holding in an exploration licence in Colombia," it added.
Challenger, with its focus on Uruguay, holds interests in the AREA OFF-1 and AREA OFF-3 blocks. It owns 40% of OFF-1, which Chevron Corp operates and owns the remainder. Challenger is the sole owner and operator of OFF-3.
Challenger Chair Iain McKendrick said: "This recommended merger fulfils all the strategic intentions of Challenger, creating an entity with a diversified and very high-graded portfolio, and which will be a springboard to further excellent returns for both sets of shareholders."
So far, the offer has received the support of just over 34% of Challenger shareholders.
By Eric Cunha, Alliance News news editor
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