CALGARY - Vermilion Energy Inc. (TSX: NYSE:VET) (NYSE: VET) has increased its ownership in Coelacanth Energy Inc. through the acquisition of additional common shares, according to an early warning report filed recently. On Monday, Vermilion acquired 12,497,000 common shares of Coelacanth for $0.75 each, totaling $9,372,750. This transaction has raised Vermilion's stake to approximately 20.84% of Coelacanth's issued and outstanding common shares.
Before this acquisition, Vermilion held around 18.55% of Coelacanth's common shares. If Vermilion exercises all of its common share purchase warrants, its interest could increase to approximately 21.88%. The company stated that the shares were bought for investment purposes and it may adjust its holdings depending on various factors, including market conditions and Coelacanth's business prospects.
Vermilion is an international energy producer with a portfolio of assets across North America, Europe, and Australia, focusing on light oil and liquids-rich natural gas. The company is known for prioritizing health, safety, and environmental protection, and it has been recognized for its transparency and management of key ESG issues.
This strategic investment in Coelacanth Energy aligns with Vermilion's approach to growth and value creation through acquisitions and development of productive assets.
The information in this article is based on a press release statement from Vermilion Energy Inc.
InvestingPro Insights
Vermilion Energy Inc.'s recent acquisition of additional shares in Coelacanth Energy Inc. reflects a strategic move to enhance its investment portfolio. To provide a deeper understanding of Vermilion's financial standing and market performance, InvestingPro data and tips offer valuable insights:
With a market capitalization of approximately $1.78 billion, Vermilion is navigating the energy market with a notable presence. The company's adjusted price-to-earnings (P/E) ratio for the last twelve months as of Q3 2023 stands at 3.03, suggesting that the stock may be reasonably valued in relation to its earnings. This is further supported by a high gross profit margin of 70.81%, indicating strong profitability relative to revenue.
An InvestingPro Tip notes that analysts predict Vermilion will be profitable this year, which aligns with the company's robust operating income margin of 65.39% during the same period. This profitability is crucial for investors considering Vermilion's future prospects, especially as the company expands its reach through acquisitions like Coelacanth.
Another InvestingPro Tip highlights the high shareholder yield, which could be appealing to investors seeking returns through dividends and share repurchases. Vermilion's dividend yield as of the indicated date stands at 2.76%, paired with a dividend growth of 29.65% in the last twelve months as of Q3 2023, showcasing the company's commitment to shareholder returns.
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