Tanganyika Oil Co. Ltd. (TYK.TO, TYK.V, TKYOF.PK) said Thursday that it has entered into a Support Agreement with China Petroleum & Chemical Corp. (SNP), or Sinopec. Pursuant to which, Sinopec's wholly owned subsidiary, Sinopec International Petroleum Exploration and Production Corp. will acquire all the outstanding common shares of oil and gas company Tanganyika by way of a negotiated take-over bid amounting to C$31.50 per share in cash.
Calgary, Alberta-based Tanganyika Oil further stated that its Board has unanimously determined that the offer is fair and in the best interest of Tanganyika shareholders and has recommended the offer its shareholders. The offer will be open for acceptance for 35 days and will be conditional upon, among other things, valid acceptances from at least 66 2/3% of Tanganyika's outstanding shares. If this target is achieved, Sinopec International Petroleum Exploration and Production, or SIPC, has agreed to undertake to acquire any remaining outstanding Tanganyika shares.
Tanganyika Oil noted that the cash offer represents a substantial premium to both the recent and historical trading prices of its shares. According to the company, SIPC will fund the offer through its internal resources and is not conditional upon any financing arrangements.
The Support Agreement further provides for the customary Board of directors support, non-solicitation and right to match provisions in favor of SIPC, and the payment to SIPC of a termination fee of C$65 million if the acquisition is not completed in certain specified circumstances. SIPC will pay the break-up fee in the event that all approvals required to be obtained from the Chinese government for closing the offer is not obtained on or before December 24 and Tanganyika decides to terminate the agreement.
Tanganyika Oil stated that all directors, officers, and certain other shareholders of Tanganyika have entered into lock-up agreements with SIPC to tender their shares to the offer. Their shares represent approximately 16.2% of Tanganyika's 65.62 million outstanding shares.
Tanganyika Oil holds operating interests in two Syrian production sharing agreements covering the Oudeh Block and the Tishrine and Sheik Mansour Blocks. During the first half of 2008, the average gross field production was 16,670 barrels of oil per day.
SIPC undertakes overseas investments and operations in the upstream oil and gas sector. Parent company Sinopec produces and supplies oil products and major petrochemical products.
SNP closed Wednesday's regular trading on the NYSE at $85.50, up $1.58, with a volume of 450,400 shares.
On the TSX, TYK.TO closed Wednesday's regular trading at C$26.00.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.