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GeoPark stock soars after rejecting Parex Resources’ $9 takeover bid

Published 30/10/2025, 14:00
© Reuters.
PXT
-0.11%
GPRK
1.45%

Investing.com -- GeoPark Ltd (NYSE:GPRK) stock surged 26.5% in premarket trading Thursday after the Latin American energy company confirmed it had rejected an unsolicited takeover offer from Parex Resources (TSX:PXT).

The company’s board unanimously rejected Parex’s all-cash proposal of $9.00 per share, which was received on September 4, prior to GeoPark’s acquisition in Argentina’s Vaca Muerta basin. The board determined that the offer "significantly undervalues GeoPark" and "fails to recognize its growth prospects and diversified portfolio."

According to GeoPark, the proposal does not account for the company’s projected 46% increase in production and approximately 70% increase in adjusted EBITDA by full-year 2028, as outlined in its strategic plan presented at its recent Investor Day.

Following GeoPark’s rejection, Parex has acquired an 11.8% ownership stake in the company, positioning itself to potentially call a special shareholder meeting. Parex stated that its offer represented a 44% premium to GeoPark’s share price at the time of the proposal.

GeoPark CEO Felipe Bayon emphasized the company’s recent expansion into Argentina’s Vaca Muerta basin, which adds approximately 60 million barrels of recoverable resources and extends GeoPark’s 2P reserve life index to around ten years. The acquisition is expected to add about 20,000 boepd of new production within the next three years.

"We believe that Parex’s unsolicited proposal significantly undervalues GeoPark’s assets and its long-term prospects," said Bayon. "We are confident that the long-term plan and the proven execution track record of the talented GeoPark team will create significant value for our shareholders."

The takeover attempt follows a previous proposal from Parex in December 2021, which GeoPark also rejected. Goldman Sachs is serving as financial advisor to GeoPark for the current matter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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