Vermilion Energy Reduces Coelacanth Energy Stake Following $19.76 Million Share Divestment

Vermilion Energy Inc. (VET, VET.TO) has completed a significant reduction in its shareholding of Coelacanth Energy Inc., disposing of 26 million common shares through a series of private transactions at $0.76 per share, generating gross proceeds of $19.76 million. The transaction magnitude—exceeding 2% of Coelacanth’s total outstanding shares—triggered mandatory regulatory disclosure requirements.

The strategic shift marks a substantial repositioning of Vermilion’s investment portfolio. The energy company previously maintained 80.18 million shares in Coelacanth Energy, representing a 15.0% stake in the entity. Post-transaction, Vermilion’s holdings have contracted to 54.18 million shares, reducing its ownership percentage to approximately 10.2% of Coelacanth Energy’s issued and outstanding shares.

The amended agreement between the two parties includes a restrictive covenant limiting Vermilion’s future liquidity options. Going forward, Vermilion is prohibited from executing additional share sales exceeding 4 million units without explicit written consent from Coelacanth Energy management. This restriction effectively locks the remaining 54.18 million share position, constraining the vendor’s exit flexibility for the duration of the agreement terms.

The transaction demonstrates evolving capital allocation strategies within the energy sector, reflecting broader portfolio optimization efforts amid market conditions.