M&As this week: Maha Energy, Ithaca Energy

Maha Energy has agreed to the acquisition of all outstanding shares of Gran Tierra Energy Brasil (Gran Tierra Brasil) from Gran Tierra Energy for $35m.

The purchase consideration will be funded by Maha Energy through the issue of shares and rights.

Gran Tierra Brasil owns 100% working interests in seven blocks in the Reconcavo Basin, Bahia, Brazil.

The blocks extend across an area of 41,606 gross acres. The average production from the assets is anticipated to be between 1,200 barrels of oil equivalent a day (boed) and 1,500boed this year.

The acquisition will allow Maha Energy to expand its business operations in Brazil.

Ithaca Energy has received an offer from integrated energy company Delek Group, which already holds 19.7% stake in the former, to acquire the remaining 80.3% stake.

The offer price is C$1.95 ($1.5) a share, which represents a total purchase consideration of $996m.

Ithaca Energy will become a wholly owned subsidiary of Delek Group if the offer price is accepted and the transaction completed.