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Touchstone Exploration Inc (LSE:TXP) has reaffirmed its decision to proceed with its offer to acquire Trinity Exploration & Production PLC, stating that the bid is final and will not be increased.
In a statement, Chief Executive Paul Baay affirmed that the offer provides significant value for shareholders of both companies. “We continue to believe that the Touchstone Offer represents an attractive opportunity to materially enhance value for both Trinity’s and Touchstone’s shareholders,” Baay said. “Therefore, we have decided not to allow the Touchstone Offer to lapse at this time.” He further emphasized that the Touchstone Board remains committed to strong strategic and financial discipline.
Touchstone has stated that, despite a competing proposal from Lease Operators, it will not raise its offer. The company has already secured support from approximately 41.29% of Trinity’s shareholders, who have given irrevocable commitments in favor of the offer prior to the emergence of the alternative bid.
Baay also highlighted ongoing operational and strategic developments. Touchstone plans to keep shareholders updated as it progresses towards initial production from its Cascadura-2ST1 and Cascadura-3ST1 wells. Additionally, the company is set to drill two further development wells at the Cascadura B site in the fourth quarter of 2024, as previously announced.
The acquisition, initially valued at £24.1 million, was agreed upon in May. However, recent developments have seen Trinity’s management shifting their support to a new offer from Lease Operators, which values the transaction at £24.6 million. This new offer has altered the competitive landscape, but Touchstone remains steadfast in its current proposal, underscoring its belief in the value of its bid for Trinity.
