TransAtlantic Lodges Bidder's Statement for Incremental Takeover Offer



TransAtlantic announced today that its wholly-owned subsidiary, TransAtlantic Australia Pty. Ltd., has lodged with the Australian Securities & Investments Commission a bidder's statement in connection with an all cash takeover offer for all of the shares in Incremental Petroleum Limited. The Company believes that Incremental's operations and properties would be highly complementary if combined with TransAtlantic.

Subject to the conditions contained in the Bidder's Statement, TransAtlantic Australia will offer $1.05 Australian dollars in cash for each Incremental share. This represents a premium of 12.9% to the Incremental share closing price of $0.93 Australian dollars on October 24, 2008, the trading day immediately prior to the Company's announcement of its intention to acquire the Incremental shares. The Offer will be conditional on TransAtlantic Australia obtaining a relevant interest in at least 75% of the Incremental shares, and on a number of other conditions. There are 79,735,605 Incremental shares currently outstanding.

The Company has entered into a credit agreement with Dalea Partners, LP ("Dalea"), an entity controlled by the Company's Chairman, N. Malone Mitchell 3rd, for the financing of the Offer. Under this arrangement, Dalea will advance to the Company funds up to an amount which will be sufficient to enable TransAtlantic Australia to acquire all of the Incremental shares under the Offer, plus pay TransAtlantic Australia's transaction costs. The Dalea credit agreement is for a term of one year and will bear interest at a rate of 10% per annum.

 

 


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