TRI TEXAS ANNOUNCES OFFER TO HOME-STAKE COMPANIES
TRI TEXAS ANNOUNCES OFFER TO HOME-STAKE COMPANIES DALLAS, Nov. 15 /PRNewswire/ -- Tri Texas, Inc.
(NASDAQ Bulletin Board: TTEX) today announced that it recently submitted to the board of directors of both The Home-Stake Oil & Gas Company (HSOG) and The Home-Stake Royalty Corporation (HSRC) a proposal to make a cash tender offer to the shareholders of such entities. The price proposed to be paid by Tri Texas was $150 per share for HSOG and $225 per share for HSRC.
No decision has been reached by the board of directors of HSOG and HSRC as to whether or not to recommend acceptance or rejection of the offer proposed by Tri Texas. Recent discussions between management of Tri Texas and of both HSOG and HSRC concerning various alternatives involving the Home-Stake Companies include the possible liquidation of such entities as well as a cash tender offer by Tri Texas. There is no certainty that such discussions will prove fruitful. Tri Texas currently owns approximately 24 percent of HSOG and 18 percent of HSRC and has uncontested options to acquire an additional 10 percent of each entity. Delbert T. Howell, president of Tri Texas, Inc., stated that Tri Texas has received verbal commitments from one or more financial institutions and private investors to provide the approximate $20 million necessary to complete the proposed tender offer. These commitments are subject to Tri Texas' final engineering review of the Home-Stake Companies reserves as well as other customarily performed due diligence. Tri Texas has additional options to acquire approximately 12 percent of HSOG and 10 percent of HSRC which Home-Stake has been attempting to cancel. Tri Texas recently initiated litigation against both HSOG and HSRC related to their attempt to cancel such options. The purpose of such litigation was, among other things, to obtain a declaratory judgment as to the validity of the options held by Tri Texas. This litigation is not expected to be resolved for some time absent an agreement between Tri Texas and the Home-Stake Companies. Howell stated that he was pleased the management of both companies now appear to be in sincere negotiations attempting to resolve their differences without further litigation and that a resolution is hoped to be reached in the reasonably near future. Tri Texas continues to be involved in the quick lube oil change business operating or managing six Texaco Express Lube facilities in the Dallas/Fort Worth area. -0- 11/15/91 /CONTACT: Delbert T. Howell, president of Tri Texas, 214-931-7694/ (TTEX) CO: Tri Texas Inc.; Home-Stake Oil & Gas Company ST: Texas IN: AUT SU: TNM CK -- NY038 -- 1480 11/15/91 11:08 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 15, 1991|
|Previous Article:||ENERGY CONVERSION DEVICES AND HARDING ENERGY SYSTEMS ANNOUNCE NEW BATTERY AGREEMENT|
|Next Article:||DEL MASTRO TO BECOME CEO OF GANNETT TRANSIT|