Canacol Energy Ltd. (TSX: T.CNE, Stock Forum) and Shona Energy Company, Inc. (TSX: V.SHO, Stock Forum) said that Institutional Investor Services (ISS) and Glass Lewis & CO. (GL), leading proxy advisory firms, have recommended that shareholders of Canacol and Shona vote in favour of the plan of arrangement under which Canacol will acquire all of Shona's outstanding shares.
According to the Canacol Energy press release, the transaction will enable the combined company to take a leading role in Colombia's expanding energy market at a low entry price, resulting in an expanded reserves base and more diversified asset portfolio.
Shona will add three conventional heavy oil exploration contracts to Canacol's extensive exploration position in the Caguan - Putumayo basin.
Shona is an international oil and natural gas exploration, development and production company focusing on South America, specifically Colombia and Peru.
Canacol is an exploration and production company with operations focused in Colombia and Ecuador.
On Thursday morning, Canacol was trading at $0.33 a share. The company has a market cap of $204.2 million, based on 618.9 million shares outstanding. The 52-week high and low was $1.07 and $0.24 respectively.