14th Jul 2015 09:19
LONDON (Alliance News) - Tethys Petroleum Ltd Tuesday said it has chosen not to pursue a possible takeover offer made by FTSE 250-listed Nostrum Oil and Gas PLC on Monday.
Nostrum Oil shares were down 1.0% to 583.00 pence per share on Tuesday morning following the news.
Nostrum Oil on Monday had said it made a "possible offer" with a value of CAD0.2185 per Tethys share, which could have been paid in cash or in Nostrum shares or a combination of the two, in an effort to replace a separate financing offer made by AGR Energy Ltd to Tethys.
On Tuesday, Tethys said it had given due consideration to the possible offer, but "resolved not to pursue or engage in discussions with Nostrum," it said in a statement.
Nostrum Oil has not yet released a statement in response to the possible offer being rejected.
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region.
Tethys has instead decided to progress the "transformational" financing deal with AGR Energy which will lead to AGR Energy subscribing to 318.0 million new shares in Tethys at a price of CAD0.192 per share and provide Tethys with USD5 million convertible loan.
In total, Tethys will raise around USD47.7 million via the deal with AGR Energy, and the company said it will create "significant value for shareholders".
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
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