Olisol Investment Group Announces Amended Proposal to Invest in Tethys Petroleum Limited
HONG KONG, PEOPLE'S REPUBLIC OF CHINA--(Marketwired - Oct. 9, 2015) - Olisol Investment Group ("Olisol") announces that on October 9, 2015, it submitted an amendment to its non-binding proposal (the "Offer") to Tethys Petroleum Limited ("Tethys"), originally announced on October 3, 2015 (Hong Kong time), in order to ensure the superiority of the Offer to any other bids.
The amendments to the Offer include:
- an increase in the price per common share of Tethys (each, a "Share") from CDN $0.16 to CDN $0.17;
- an immediate investment of US $1.28 million upon the execution of a letter of intent relating to the Offer to allow Tethys to remedy an outstanding default on its Tajikstan license; and
- the assumption of other debts of Tethys.
The foregoing amendments were made in an effort to stabilize Tethys's current financial situation and maintain the company's asset base. Other than the amendments set forth above, the terms of the Offer as disclosed in Olisol's press release dated October 3, 2015 (Hong Kong time) remain unchanged, but for an increase in all monetary amounts given the increase of the price per Share to CDN $0.17, as set forth above.
Olisol has been focusing all efforts and expending considerable resources to satisfy various procedural requirements imposed by Tethys and its advisors in connection with the Offer, including responding to very broad information requests covering over 25 different issues - all of which were responded to in a timely and fulsome manner.
Olisol has consistently demonstrated its ability and desire to move to a definitive agreement in short order and that it has sufficient financial resources to fund the Offer and to provide broader financial support to Tethys.
"We believe that our amended offer is far superior to offers announced recently by other interested parties," said Alexander Skripka, a director of Olisol. "In addition, we have offered immediate financial assistance, which we are willing to advance even before we enter into a definitive agreement. We want to help Tethys avoid a default under its Tajikistan license and to alleviate the financial distress it is presently experiencing. We have navigated the numerous procedural hurdles that have been imposed by Tethys and we have continuously demonstrated our ability to move quickly. Why the Tethys board has elected to not engage with us is a mystery. Our offer will provide for a period of stability to allow Tethys to undertake a thoughtful review of its strategy, assets and capital commitments so as to be able to create a plan that will provide for the long term viability of the company and a maximization of shareholder value. Tethys's shareholders should be asking their board why our offer does not merit consideration."
Olisol is a private company incorporated under the laws of Cyprus and is headquartered in Almaty, Kazakhstan. Olisol has been investing in the oil & gas sector in the Russian Federation and Kazakhstan since 2002. Olisol's goal is to establish a vertically integrated oil & gas conglomerate. Olisol has worked in partnership with Tethys since 2009 in connection with the operation of the Aral Oil Terminal, a facility used primarily for the storage and loading of crude oil, the majority of which is produced in the Akkulka oil field. In addition to its interests in the Aral Oil Terminal, Olisol also owns the railway company responsible for the transportation of crude oil from the Aral Oil Terminal to refineries located in Shalkar, Kazakhstan. As such, Olisol is very familiar with Tethys and its assets and the environment in which it operates.
(October 9, 2015 - 6:19 PM EDT)
News by QuoteMedia