Proactive Investors - Run By Investors For Investors

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.

View full MXP profile View Profile

Max Petroleum Timeline

Related Articles

Ungani oilfield workers
October 12 2018
Buru expects to solidly drill the Ungani West 1 exploration well for 32 days before moving equipment back to Ungani 4ST1 well.
July 25 2018
Anfield revealed that its prospective energy partners have shown an increasing interest in its vanadium assets
oil and gas operations
August 02 2018
The agreement includes up to US$35mln in costs regarding the development of Aminex’s remaining 25% interest in the Ruvuma PSA, which would include the Ntorya project

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use