99% of Trinity shareholders approve acquisition of Lease Operations | Local business

SHAREHOLDERS of Trinity Exploration & Production have voted overwhelmingly to acquire Lease Operations Ltd in an all-cash deal subject to a scheme approved by the court.

The acquisition proposal, which was supported by more than 99% of voters at the Oct. 30 meetings, is expected to take effect Nov. 5, 2024, pending court approval.

The vote marks a potential end to a saga that has lasted more than six months.

The situation began on May 1, when the Canadian company Touchstone published a message in which it announced that it had reached an agreement with the British company Trinity to acquire all shares.

The acquisition was expected to combine two independent T&T companies and create a “major operator with a significant pipeline of onshore and offshore exploration and development assets” in the country.

On the same day, Trinity CEO Jeremy Bridglalsingh supported the proposal, saying: “I am pleased to recommend the Touchstone proposal to our shareholders. Our two companies have been working in close proximity for many years. The proposed award demonstrates the value Touchstone sees in Trinity’s team and operations, and its confidence in the future potential of the expanded business.”

However, less than three months later, on July 24, Trinity announced that it had received a cash offer of 68.05 pence per share as a result of an “unsolicited, conditional, non-binding, indicative offer from rental operators”.

Headquartered in the country, Lease Operations is a member of the Well Services Group and is currently the largest independent onshore oil producer in T&T, ahead of Trinity and Touchstone.

By August 2, Trinity announced that US investment bank Houlihan Lokey had told its directors that the leasing operators’ proposal was “superior” to Touchstone’s proposal.

Consequently, on September 18, Trinity applied to the court for permission to withdraw the scheme of agreement associated with the Touchstone proposal, and a court hearing was scheduled for September 25.

“In this regard, the court hearing is scheduled for September 25, 2024, and all necessary documents for recall have been submitted to the court. Subject to the court’s approval at the revocation hearing, the revocation will take effect immediately after the revocation hearing,” the department said.

Thereafter, on September 19, Touchstone announced its intention to terminate the acquisition.

Touchstone President and CEO Paul Baay said: “We are disappointed with the outcome of this process and the fact that UK takeover rules allow our offer to fail at this late stage in the process, despite us having acquired both shareholders. and regulatory approvals. We believe that our offer represents attractive value for all stakeholders. However, Touchstone remains committed to maintaining strict discipline in all corporate activities.”

“We will only make investments that are consistent with our strategic and financial objectives, ensuring they deliver value to our shareholders. As we continue to advance our operations to connect the Cascadura-2ST1 and Cascadura-3ST1 wells to their first production, as well as our upcoming drilling program in the fourth quarter, we look forward to updating our shareholders on our strategic and operational progress in the next quarter. months. We will soon provide an updated presentation and host an investor forum to share our developments,” Baay said.

Weeks ahead of the shareholders’ vote, Trinity confirmed on October 11 that directors Nicholas Clayton and Jeremy Bridgeglalsingh intend to vote in favor of the leasing operators’ proposal.

On October 30, Trinity received more than 99% of the vote in favor, providing the “necessary majority” needed to move forward with the deal.

In its latest bulletin, the Energy Department said Trinity produced 3,042 barrels of crude oil and condensate as of July this year.

During the same period, leasing operators produced 25 barrels of oil per day, the report said.

Meanwhile, it said Touchstone produced 257 million standard cubic feet per day (MMSCCF/D) of natural gas in the seven months of the year.