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Max Petroleum sweetens AGR deal with buyback vow

Max Petroleum sweetens AGR deal with buyback vow

Shares in Max Petroleum (LON:MXP) rallied nearly 40% as new owner AGR promised a £10mln share buy back within six months.

AGR, a vehicle of the Assaubayev family, is taking a majority 51% stake in Max through a subscription at 1.64p to raise £37.1mln for the Kazakhstan-focused oil explorer.

The deal was originally announced in August but the subscription price is unaltered despite heavy falls in both the oil and Max share price since then. The 1.64p subscription price is a 111% premium to yesterday’s close.

Max said it would use AGR’s money to repair its balance sheet and undertake the share buyback through a tender offer, which will be at 1.64p per share.  With the AGR funds, Max will also be able to pay preliminary costs as it prepares to re-enter its NUR-1 well.

A shareholder meeting to vote on the proposals is scheduled for 1 December.

Shares rose 38% to 1.07p.

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