Vermilion Energy Trimming Stake In Coelacanth Through Strategic Share Divestment

Vermilion Energy (VET, VET.TO) has significantly reduced its position in Coelacanth Energy, offloading 26 million shares at $0.76 per share in a series of private transactions totaling $19.76 million. This move marks a substantial shift in the company’s holdings strategy.

The scale of the divestment necessitated formal disclosure, as the transaction exceeded the 2% threshold of Coelacanth’s circulating shares. Prior to this round, Vermilion maintained an 80.18 million share stake, commanding approximately 15.0% ownership of Coelacanth Energy.

Following the completion of these dealings, Vermilion’s position has contracted to 54.18 million shares, now representing roughly 10.2% of the company. The revised ownership structure reflects a deliberate calibration of the energy company’s portfolio positioning.

Going forward, the terms governing Vermilion’s remaining shareholding have been tightened. The company faces restrictions on future disposals, unable to unload more than 4 million of its remaining Coelacanth Energy shares without explicit approval from the board. This covenant represents a brake on Vermilion’s exit strategy, creating a structured framework for any subsequent stake adjustments.

The divestment underscores broader portfolio rebalancing within the energy sector, where major players continue recalibrating their cross-holdings amid shifting market dynamics.