Talos Energy to terminate poison pill after agreement with Carlos Slim's firm

Reuters2024-12-17

Dec 17 (Reuters) - Talos Energy said on Tuesday it would terminate its so-called poison pill after it reached an agreement with Mexican billionaire Carlos Slim's investment firm that it would not exceed a threshold of 25% ownership in the oil and gas firm.

In October, the company had adopted the shareholders rights plan after Slim's Control Empresarial De Capitales accumulated 24% of Talos' common stock.

Poison pill, or shareholders rights plan, is often used by corporates to thwart hostile takeover bids.

Talos said on Tuesday it has entered into an agreement with Slim's firm that through Dec. 16, 2025 it would not acquire additional shares of Talos common stock, which would cause the investor group's holdings to exceed 25%.

Separately, Houston, Texas-based Talos said it would sell an additional 30.1% interest in its Mexico unit to Zamajal — owned 90% by Grupo Carso and 10% by Control Empresarial, both of which are backed by Carlos Slim.

Last year, the unit of Grupo Carso had purchased a 49.9% stake in Talos Mexico.

After the deal closes, Talos Energy will own 20% in Talos Mexico, while the rest will be held by Zamajal.

Talos Energy will receive $49.7 million in cash, with an additional $33 million due upon first commercial production from the Zama Field.

The Mexican subsidiary of Talos Energy, which discovered the Zama Field in 2017, controls 17.4% of the potentially lucrative deposit in Mexican territorial waters in the Gulf of Mexico.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Shilpi Majumdar)

((Tanay.Dhumal@thomsonreuters.com; Twitter: ))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment