Vermilion Energy Inc. sold 30 million common shares of Coelacanth Energy Inc. at $0.76 per share, generating $22.8 million in proceeds. The sale reduced Vermilion’s ownership stake from 20.7 % to 15.0 %, a change that triggers the filing of an Early Warning Report under Canadian securities law.
The transaction is part of Vermilion’s ongoing debt‑reduction program. Earlier in 2025 the company sold U.S. assets for $120 million, and it has already reduced net debt by more than CAD 650 million since Q1 2025. Management expects net debt to fall to roughly $1.3 billion by year‑end, and the proceeds from this sale will be applied directly to debt repayment, improving financial flexibility and supporting future growth initiatives.
An amendment to the investor‑rights agreement with Coelacanth limits Vermilion from selling more than 60 million of its original shares without consent until June 8 2026. The agreement reflects a structured approach to further divestments and signals that the company will continue to manage its stake in a disciplined manner.
The sale did not trigger a noticeable market reaction, but it aligns with Vermilion’s broader portfolio optimization strategy. The company will host an Investor Day on December 10 2025 to discuss its global gas portfolio and outlook, providing investors with additional context on how the proceeds will be deployed.
Management reiterated that the proceeds will be used to pay down debt and strengthen the balance sheet, underscoring the company’s focus on financial discipline and long‑term resilience.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.