Nostrum Oil & Gas PLC has began to deal with Tethys Petroleum Ltd to buy the company, less than a month after Tethys had refused its previous overtures.
The informal bid has been made by Nostrum to buy 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.
Tethys had decided not to follow on the potential takeover bid from Nostrum, of the same value in mid-July. 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.
Tethys have accorded 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.
The informal bid has been made by Nostrum to buy 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.
Tethys had decided not to follow on the potential takeover bid from Nostrum, of the same value in mid-July. 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.
Tethys have accorded 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.