LONDON (Alliance News) - MX Oil PLC shares surged on Monday morning after the company said it has received a formal offer and term sheet to acquire its investment in Nigeria.
The oil and gas investment company said value of the offer "represents several multiples" of MX Oil's current market capitalisation and said it believes selling the investment on these terms would be more attractive to its shareholders than raising equity to fund its investment to first oil.
MX Oil said it will, therefore, actively progress the talks with the bidder.
"Our Nigerian investment is now close to oil production and even in the current oil price environment, it has a significantly greater value than that implied by our current share price and valuation," said Stefan Olivier.
"We are committed to delivering the best funding option or asset transaction possible in the time available and expect to make further announcements to the market in due course," he added.
Shares in MX Oil were up 83% to 1.10 pence on Monday shortly after market open.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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