Parex Resources Announces Its Proposal to Acquire GeoPark and an 11.8% Ownership Position

Core Viewpoint - Parex Resources Inc. has proposed to acquire GeoPark for US$9.00 per share in cash, representing a significant premium to GeoPark's current share price, but the GeoPark Board has rejected the proposal without constructive engagement [1][3][5]. Summary by Sections Proposal Details - The proposed acquisition price of US$9.00 per share represents a 44% premium to GeoPark's share price at the time of the proposal [5][12]. - Parex has acquired an 11.8% ownership stake in GeoPark, allowing it to call a special shareholder meeting [2][3]. - The total value of GeoPark, including net debt, is approximately US$940 million, which exceeds the value of GeoPark's Colombian proved plus probable reserves based on 2024 disclosures [5][6]. Company Statements - The CEO of Parex stated that the rejection of the proposal denies GeoPark shareholders the opportunity to receive cash at a significant premium and criticized GeoPark's decision to pursue a capital-intensive investment in Argentina [3][8]. - Parex remains willing to engage with GeoPark to finalize the transaction and hopes the GeoPark Board will reconsider its position [2][8]. Historical Context - Parex previously submitted a proposal in December 2021, which was rejected by GeoPark, and has since attempted to engage with GeoPark multiple times regarding its recent proposal [6][8]. - Key dates include the initial proposal submission on September 4, 2025, and the acquisition of the 11.8% stake on October 29, 2025, after GeoPark's Board rejected the proposal [6][8]. Financial and Legal Advisory - Parex has retained Scotiabank as its financial advisor and several law firms for legal counsel, indicating a serious commitment to the proposed acquisition [8].