Nostrum Withdraws Tethys Takeover Offer, AGR Proposes Share Deal
Central Asia-focused Tethys Petroleum Limited announced Wednesday that it has received a non-binding letter of intent from AGR Energy Holdings Limited to acquire $20 million worth of Tethys shares, at a price of C$0.165 per share, following the withdrawal of Nostrum Oil & Gas plc’s offer to acquire the entire issued share capital of Tethys together with a proposed $20 million interim funding transaction.
Tethys has warned that there is “no certainty” AGR’s proposal, which would also include a $5 million loan to support short-term liquidity, will result in a transaction. Nostrum withdrew its proposed offer, previously announced Sept. 23, to acquire the entire issued share capital of Tethys after Tethys' largest shareholder, Pope Asset Management, informed Nostrum that it did not support the deal.
Tethys Petroleum revealed Aug. 10 that a separate $47.7 million financing deal with AGR Energy, which the company's management previously said represented "a transformational deal for Tethys", had fallen through. Following the breakdown of talks with AGR, Tethys received interest from Nostrum Oil & Gas, despite rejecting Nostrum's original takeover approach in mid-July.
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