The directors of Trinity Exploration & Production PLC (AIM:TRIN) today confirmed that they no longer recommend the takeover bid of Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) – and instead intend unanimously to recommend that eligible shareholders vote in favour of the recent rival ‘Lease Operators’ offer.
Albeit, the directors also noted that existing ‘irrevocable undertakings’ in favour of the prior Touchstone offer remain in place until they lapse on 22 August.
In London, Trinity shares rose around 5.6% on Tuesday to change hands at 61.8p.
Trinity last week announced it had received the competing cash offer, priced at 68.05p per share.
Previously, in May, Touchstone agreed to an ‘all-share’ deal to acquire Trinity worth (at that time) £24.1 million with Trinity shareholders set to receive 1.5 shares in Touchstone for every Trinity share they owned.
Based on Touchstone's price at the time of the deal’s announcement, it was a significant premium price equating to an uplift of around 72%.
Trinity chair Nick Clayton today commented: "Whilst unusual, the competitive nature of this situation is welcomed by the Trinity Directors as we endeavour to secure the best possible outcome for Trinity Shareholders through this process.
“We believe that the Lease Operators acquisition is a material improvement for Trinity shareholders over the Touchstone offer and accelerates, without further capital investment, time or operational risk, the delivery of fair value to Trinity shareholders."
Touchstone, meanwhile, said yesterday that it was evaluating its position.