28th Aug 2015 15:46
LONDON (Alliance News) - Nostrum Oil and Gas PLC Friday said it would be prepared to make a new approach to takeover Tethys Petroleum, but at a much lower price than it originally offered in light of a recent review of the deal.
FTSE 250-listed Nostrum said it would be willing to make a new offer after the deadline to make its previous offer firm expired.
Nostrum said it "would be prepared to make an offer" at a price of CAD0.147 per Tethys share, which is drastically lower than the CAD0.2185 per Tethys share originally offered earlier in August.
Nostrum said it had revised the price following a recent due diligence review of Tethys and its business and in light of the recent Kazakh tenge devaluation and change in macro-economic conditions.
The new offer of CAD0.147 is still a 22.9% premium to the CAD0.12 closing price of Tethys shares on Tuesday, when Nostrum informed Tethys of its revised offer, it said.
Although Nostrum has shown its intention to make a new offer, it has not made it official and said the announcement does not mean a firm offer will be made.
Nostrum shares closed up 1.5% to 492.50 pence per share on Friday.
By Joshua Warner; [email protected]; @JoshAlliance
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