(Alliance News) - Touchstone Exploration Inc on Wednesday said it reached an agreement to buy Trinity Exploration & Production PLC.
The Trinidad & Tobago-focused oil exploration and production companies aim to become "a leading Trinidadian operator of scale," Touchstone, which calls itself the largest independent onshore oil and natural gas producer in Trinidad, said.
The companies expect the acquisition to become effective before the end of the third quarter of 2024.
The all-share agreement values Trinity at GBP24.1 million. Trinity shareholders will receive 1.5 new Touchstone shares for each Trinity share owned. Trinity Shareholders will own just under 20% of the combined firm. Trinity directors consider the terms of the deal to be "fair and reasonable".
The deal implies a value of 61.9 pence per Trinity share, based on the Touchstone's share closing price of 41.25p on Tuesday. It is 72% higher than Trinity's share closing price of 36p on Tuesday.
Trinity shares surged 47% to 53.00 pence each on Wednesday morning in London, while Touchstone shares fell 2.2% to 40.33p each.
Trinity Chief Executive Officer Jeremy Bridglalsingh said: "I am pleased to be recommending Touchstone's offer to our shareholders. Our two companies have operated in close proximity over many years. The premium offered demonstrates the value Touchstone sees in Trinity's team and operations and its confidence in the future potential of the enlarged business."
Touchstone CEO Paul Baay said: "The combined group will be able to invest in multiple development programmes and accelerate the growth potential of the enlarged asset base, thereby giving us the potential to materially enhance long-term value."
By Tom Budszus, Alliance News slot editor
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Touchstone Exploration (TXP)
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