(WO) – Greenland Energy has agreed to acquire its joint venture partner 80 Mile plc in an all-share deal that would give the combined company 100% ownership of the Jameson Land basin licenses in East Greenland. The deal values 80 Mile at about £74 million (about $98 million) on a fully diluted basis, a 71% premium to its share price before the offer period began in September.
80 Mile shareholders will receive 0.0079485 new Greenland Energy shares for each 80 Mile share, and each company’s shareholders will own about 50% of the combined company. Greenland Energy, which had $37.4 million in cash as of June 30, will also provide 80 Mile with a £3-million convertible loan for interim funding.
The combined company will hold the Jameson Land licenses alongside 80 Mile’s other assets, forming a diversified energy and critical minerals company. Greenland Energy said the deal will remove the administrative complexity of managing a joint venture and give 80 Mile’s assets access to cheaper and more plentiful financing.
“This combination builds on our existing partnership and brings our respective Jameson Land interests under common ownership,” said Robert Price, CEO of Greenland Energy. “It would simplify the development structure, preserve cash through an all share transaction and provide greater flexibility to prioritize investment across the combined portfolio.”
The deal requires approval from both companies’ shareholders, UK court sanction of the scheme of arrangement and Greenlandic government consents. Greenland Energy recently extended its Jameson Land exploration well deadlines to 2028.
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