(Yicai) Sept. 18 -- Hainan Mining’s stock price slid after the Chinese company backed by Fosun International said its Roc Oil unit has offered SEK1.9 billion (USD267.7 million) to acquire Tethys Oil, a Swedish oil explorer and producer in Oman.

Hainan Mining [SHA: 601969] closed 5.7 percent down at CNY5.49 (78 US cents) a share in Shanghai today, after earlier plunging by as much as 8.2 percent. Trading resumed today after a holiday in China for the Mid-Autumn Festival.

Sydney-based Roc Oil offered SEK58.70 (USD5.77) per share for Tethys on Sept. 13, Hainan Mining said late the same day, noting that that was around 89 percent higher than Tethys’s closing price [OM: TETY] on Sept. 12. But the cash offer also represents a discount of about 29 percent on the value of the Stockholm-based firm's net assets, the buyer pointed out.

The independent committee of Tethys's board unanimously recommends that shareholders accept the offer, the Swedish company said, adding that the deal is subject to approval by regulators in Oman, Sweden, Denmark, and Lithuania.

Tethys’s main assets are in Oman, where it has rights and interests in four onshore oil fields. It had proven and estimated reserves of about 21.7 million barrels as of the end of last year, and averaged daily production of around 7,860 barrels in the first half of this year.

Tethys reported a net profit of USD58.5 million between 2021 and 2023 on operating revenue of USD407.4 million. Following its acquisition, Roc Oil's crude oil reserves will swell by about 123 percent and its Middle East presence and business will expand significantly.

Editor: Martin Kadiev