Tethys shares rise on Nostrum takeover talks

Sweden

STOCKHOLM, August 10, 2015 – Swedish oil and gas company Tethys Petroleum saw its shares surge by about 20 percent on Monday morning, related to talks with the Netherlands’ Nostrum Oil & Gas for a possible takeover. Tethys’ company value would be pegged at about £36 million if Nostrum buys in at the proposed 10.7 pence per share.

The share rise follows the announcement of a scrapped refinancing deal between Tethys and AGR Energy that would have been worth $47.7 million. The plan had included a $5-million short-term loan provided by AGR.

Nostrum will now give Tethys a loan of equal value while it conducts due diligence on the company. The Dutch company will give its decision on whether or not it will make a formal offer by August 26.

Tethys had previously been in talks with Nostrum for a takeover in mid-July, but rejected the company’s offer.

Previous

UK company sees steep losses at market opening

Next

UK junior Rockhopper acquires Egyptian assets