(Alliance News) - Nu-Oil & Gas PLC said Tuesday it has signed heads of terms for the acquisition of a European plastics recycling and reprocessing business, to create a potentially enlarged company which will act as a consolidation vehicle in the sector.
The proposed acquisition will constitute a reverse takeover transaction, meaning that the cash shell's shares on AIM have been suspended from trading.
The commercial parts of the heads of terms are non-binding, however it includes binding provisions of exclusivity and transaction fees of the counterparty up to GBP60,000.
The acquisition would also bring in a new Chief Executive Officer, and new appointees to the board with commercial and sector experience.
"We are delighted to have entered into Heads of Terms to acquire a business that would be transformational for Nu-Oil. Today marks the first step towards delivering on the company's refocused strategy of increasing value for shareholders by targeting acquisition opportunities in the environmental industries sector," said Non-Executive Chair Jay Bhattacherjee.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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