10th Aug 2015 06:31
LONDON (Alliance News) - Nostrum Oil & Gas PLC on Monday said it has made a further approach to Tethys Petroleum Ltd to acquire the company, less than a month after Tethys had rejected its previous overtures.
FTSE 250-listed Nostrum said it has made a informal bid to acquire the entire issued share capital of Tethys for CAD0.2185 per Tethys share, valuing Tethys at around CAD73.6 million, or around GBP36.2 million.
In mid-July, Tethys said it had decided not to pursue the potential takeover bid from Nostrum, of the same value. Tethys said it had given due consideration to the possible offer, but "resolved not to pursue or engage in discussions with Nostrum", it had said in a statement.
On Monday, Nostrum said it and Tethys have agreed to negotiate a USD5 million loan financing to support the short-term liquidity of Tethys during the period in which any formal offer may be implemented. Nostrum has been granted exclusivity on the talks until August 25, though it said there is no certainty a formal offer for Tethys will be made.
By Sam Unsted; [email protected]; @SamUAtAlliance
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