Tethys Petroleum Limited announces that Nostrum Oil & Gas PLC (Nostrum) has withdrawn its proposed offer that was previously announced on September 23, 2015 ("Proposed Offer") to acquire the entire issued share capital of Tethys together with a proposed US$20 million interim funding transaction (the Interim Funding and, together with the Proposed Offer, the Proposed Transaction).
Tethys and Nostrum have worked together to negotiate legally binding agreements implementing the Proposed Transaction during the exclusivity period that began on September 23, 2015 and expired at 11:59 p.m. on October 6, 2015. However, as stated in Tethys' announcement on September 23, 2015 a condition to the entry into those agreements was that the three major shareholders of Tethys agree to support the Proposed Offer in a form and substance satisfactory to Nostrum.
As indicated in Nostrum's press release, Tethys' largest shareholder, Pope Asset Management, has informed Nostrum that it does not support the Proposed Transaction and therefore, despite the progress made by Nostrum and Tethys in preparing transaction documentation, Nostrum has informed the Company that the Proposed Transaction will not proceed.
Tethys notes that Nostrum has reserved its right to propose alternative transactions to Tethys and/or to make an offer for the share capital of Tethys on different terms to those previously announced. However, there can be no certainty that Nostrum will propose any alternative transactions to Tethys or make any offer for the share capital of Tethys on terms different to those previously announced.
