Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) has told investors it will retain its offer to buy Trinidad peer Trinity Exploration & Production PLC (AIM:TRIN), and, has confirmed its offer is final and won’t be increased.
"We continue to believe that the Touchstone Offer represents an attractive opportunity to materially enhance value for both Trinity's and Touchstone's shareholders, and we have therefore decided not to allow the Touchstone Offer to lapse at this juncture,” chief executive Paul Baay said in a statement.
“The Touchstone Board maintains strong strategic and financial discipline with all corporate activity and continues to believe that the Touchstone Offer represents very attractive value to Trinity Shareholders; therefore, notwithstanding the Lease Operators Offer, Touchstone does not intend to increase its previously communicated offer.”
Baay added: “Separately, within the constraints of the offer process, we will continue to keep our shareholders regularly updated on operational and strategic developments as we progress towards initial production from our Cascadura-2ST1 and Cascadura-3ST1 wells, and drill two additional development wells at our Cascadura B site in the fourth quarter of 2024, as previously announced on 13 August 2024."
The company also asserted that it retains the backing of some 41.29% of Trinity shares, after those shareholders gave ‘irrevocable undertakings’ before a competing takeover offer was made for Trinity.
In May, Touchstone announced it had agreed the Trinity deal, with the transaction worth £24.1 million.
More recently, in early August, Trinity’s management changed stance, giving their backing alternatively to a new £24.6 million from a company called Lease Operators.