TRI TEXAS EXTENDS TENDER OFFER
TRI TEXAS EXTENDS TENDER OFFER DALLAS, Dec. 11 /PRNewswire/ -- Tri Texas, Inc.
(NASDAQ Bulletin Board: TTEX) today announced that it has extended, until 5:00 p.m. Dallas time, on Dec. 23, 1991, its offers to purchase shares of common stock of The Home-Stake Oil & Gas Company ("HSOG") and The Home-Stake Royalty Corporation ("HSRC"). The initial expiration date of the offers by Tri Texas was Dec. 11, 1991.
On Nov. 22, 1991, Tri Texas initiated cash tender offers to purchase the common stock of HSOG for $161.00 per share and the common stock of HSRC for $248.00 per share. Tri Texas currently owns approximately 24 percent of HSOG and approximately 18 percent of HSRC and has options to acquire additional shares of both entities. As of the time of this release, the depositary involved in these tender offers has received tenders with respect to 310 shares of HSOG and 20 shares of HSRC. On Dec. 6, 1991, the Home-Stake Companies initiated litigation against Tri Texas claiming that the offers being made by Tri Texas were not in compliance with various federal laws and regulations and were not in compliance with the Oklahoma Take-Over statute. One of the complaints by the Home-Stake Companies was that the Dec. 11, 1991, expiration date for the Tri Texas offers did not allow (a) the shareholders of the Home-Stake Companies sufficient time to evaluate all ramifications of these offers, or (b) the board of directors of the Home-Stake Companies sufficient time to obtain a "fairness" opinion as to the prices being proposed by Tri Texas. Another issue raised by the Home-Stake Companies was its concern that Tri Texas not be allowed to purchase shares of the Home-Stake Companies outside of the tender offers. In connection with such litigation, the Home-Stake Companies and Tri Texas agreed to an order which resulted in a temporary restraining order being imposed on Tri Texas whereby Tri Texas was precluded from purchasing shares of the Home-Stake Companies outside of the tender offer. Such order expired on Monday, Dec. 9, 1991. Tri Texas has not purchased any shares of the Home-Stake Companies outside of the tender offer and does not intend to do so except to the extent disclosed in its offers to purchase shares of the Home-Stake Companies, as such offers are amended. No shares of the Home-Stake Companies will be purchased by Tri Texas, during the pendency of these tender offers, at prices in excess of $161.00 per share for HSOG and $248.00 per share for HSRC. It is the understanding of Tri Texas that the board of directors of the Home-Stake Companies have received a determination from an undisclosed third party that the prices offered by Tri Texas for the shares of the Home-Stake Companies are inadequate. No information has been provided to Tri Texas as to what assumptions were utilized in arriving at this determination or as to the prices which would be deemed to be adequate. Based upon information that has been made available to the public by the Home-Stake Companies, Tri Texas believes that the prices offered to the shareholders of the Home-Stake Companies are adequate and do represent the true value of the Home-Stake Companies. While consummation of the tender offers made by Tri Texas are contingent upon a number of conditions, the most significant condition is the availability of financing to enable Tri Texas to fund its obligations under these offers. As previously announced, Tri Texas has entered into an agreement with Summit Partners Management Co., a Dallas based oil and gas investment company ("Summit"). Such financing arrangement contemplates that Summit will fund up to $28,000,000 to enable Tri Texas to fund its cash tender offers for The Home-Stake Companies. The agreement between Tri Texas and Summit anticipates the formation of a new entity which will ultimately acquire from Tri Texas the stock of the Home-Stake Companies which Tri Texas now owns and hereafter acquires. Such financing is subject to compliance with certain conditions which Tri Texas anticipates being satisfied prior to the expiration of its tender offers for the Home-Stake Companies. The Home-Stake Companies are independent oil and gas concerns engaged in the exploration, production, development and acquisition of oil and gas properties. The Home-Stake Companies were formed in the early 1920s and are headquartered in Tulsa, Okla. At Dec. 31, 1990, the Home-Stake Companies owned interests in approximately 390 producing working interest properties and over 1,000 producing royalty interest properties. These properties are located in approximately 16 states and have estimated recoverable proved producing developed reserves of approximately 2,650,000 barrels of oil (including the April 1991 acquisition of certain Montana properties) and 21,690,000 Mcf of gas. 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 (Texas) area. -0- 12/11/91 /CONTACT: Delbert T. Howell, president of Tri Texas, 214-931-7694/ CO: Tri Texas, Inc. ST: Texas IN: OIL SU: OFR
JT -- NY084 -- 1702 12/11/91 18:52 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Dec 11, 1991|
|Previous Article:||EVRO FINANCIAL CORP. ANNOUNCES LETTER OF INTENT|
|Next Article:||RIEDEL ENVIRONMENTAL ANNOUNCES RESIGNATION OF CHIEF OPERATING OFFICER|