Sector News

Roxi Petroleum unveils deal to take control of BNG project

February 27, 2017

Roxi Petroleum Plc has agreed a deal that will see it increase its holding in the BNG assets, in Kazakhstan, to 99% from 59%.

Through a merger agreement with Baverstock the company is set to take full ownership of what is termed as the Ergon assets – which include the flagship BNG assets.

It will see Roxi issue some 651.4mln new shares to Baverstock, and in a separate arrangement some 80.8mln more new shares will be issued to Kuat Oraziman as conversion of an existing loan. All the new equity will equate to around 43.8% of the enlarged company.

Clive Carver, Roxi chairman, in a statement, said the deal was “long planned” and highlighted that by bringing BNG under its full control the company has removed funding restraints.

“Additionally the capitalisation of some $10 million of debt would not only make the group essentially debt free but also demonstrates the continued belief and commitment of the company’s leading investors to its ultimate success,” he added.

Roxi will relaunch after the deal, under the new name of Caspian Sunrise PLC.

Stockbroker WH Ireland repeated its ‘buy’ recommendation for Roxi, which comes with a 23.3p price target suggesting some 140% upside to the current price of 9.75p.

“The merger, once approved, will increase the pro rata market capitalisation of the company to £158M whilst facilitating progress at BNG by simplifying its ownership structure and consolidating financial and strategic control within Roxi,” the broker said in a note.

By Jamie Ashcroft

Source: Proactive Investors

comments closed

Related News

August 23, 2019

The higher purpose of being a CEO

Borderless Leadership

LinkedIn Twitter Xing EmailWhen I left my second large company experience to become President of a small manufacturing company I did so driven by ego; I fancied the title. Soon […]

August 23, 2019

As Brexit nears, Britain’s drugs, devices and pricing regulators seek the exit

Life sciences

LinkedIn Twitter Xing EmailFirm details on exactly how the U.K. will regulate new medicines is still to be decided after it leaves the EU later this year (caveats on timing […]

August 23, 2019

The Simply Good Foods Company acquires Quest Nutrition for $1bn

Consumer Packaged Goods

LinkedIn Twitter Xing EmailThe Simply Good Foods Company, the owner of Atkins-branded food products, has secured a deal to acquire protein snack maker Quest Nutrition for $1 billion. Quest, which […]

How can we help you?

We're easy to reach