Revised proposal of extraordinary distribution to shareholders, proposal to cancel treasury shares and Q1 2020 cash update
Tethys Oil’s Board of Directors has, in light of recent market developments, decided to revise its proposal for an extraordinary distribution to shareholders. The original proposal was for an extraordinary distribution of SEK 6.00 per share by way of a mandatory share redemption programme. The Board of Directs now proposes an extraordinary distribution of SEK 3.00 per share by way of a mandatory share redemption. The proposal of an ordinary dividend of SEK 2.00 per share remains, but is proposed to be paid in one instalment of SEK 2.00 per share immediately after the AGM instead of originally proposed two instalments of SEK 1.00 per share in May and November 2020. The Board of Directors’ proposal represents a total distribution to shareholders of SEK 5.00 per share through dividend and extraordinary distribution which represents a total cash distribution of MSEK 165.3 (MUSD 16.3 at current exchange rates).
The Board of Directors will also propose to the AGM to cancel all 3,238,352 treasury shares held by the company. Tethys Oil has is 36,294,960 issued shares of which the Company holds 3,238,352 (corresponding to 8.9 percent). If the AGM approves the proposal the new number of shares in issue will be reduced to 33,056,608. The Board will also request from the AGM a renewed mandate to repurchase up to 10 percent of the issued shares.
Tethys Oil had at 31 March 2020 a cash position of MUSD 77.7 after having repurchased shares for a total consideration of MSEK 59.1 (MUSD 6.1) in the first quarter.
“Even in these extraordinary times, Tethys Oil aims to continue to return cash to its shareholders, as it has done in the past, through the various means at the company’s disposal, including dividends, extraordinary distributions and share repurchases. Under the current market circumstances the board of director’s saw it fit to reduce the extraordinary distribution to give the company flexibility to respond to continued uncertainty. Tethys Oil’s management and board of directors continue to monitor the situation closely and will consider additional cash distribution to shareholders later in 2020 if market conditions and the Group’s financial position allows for it,” says Magnus Nordin, Managing Director, Tethys Oil AB.
Tethys Oil’s Annual General Meeting 2020 is planned to be held in Stockholm on 13 May 2020 at CEST 15:00.
For further information, please contact
Magnus Nordin, Managing Director, phone +46 8 505 947 00
This information is information that Tethys Oil AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 20:28 CEST on 6 April 2020.
Tethys Oil AB (publ)
Tethys Oil is a Swedish oil company with focus on onshore areas with known oil discoveries. The company’s core area is the Sultanate of Oman, where it holds interests in Blocks 3&4, Block 49 and Block 56. Tethys Oil has net working interest 2P reserves of 26.1 mmbo and net working interest 2C Contingent Resources of 13.5 mmbo and had an average oil production of 12,832 barrels per day from Blocks 3&4 during 2019. The company’s shares are listed on Nasdaq Stockholm (TETY). Website: www.tethysoil.com