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LONDON (Alliance News) - Oil and gas engineering services company Plexus Holdings PLC on Thursday said it has signed a framework agreement with Chinese oil services company Yantai Jereh Oilfield Services Ltd concerning Plexus' wellhead equipment.
Under the deal, the pair will work towards formalising a licence agreement which will allow Yantai Jereh to manufacture and sell Plexus wellhead equipment in the Chinese and wider Asian oil and gas markets.
Yantai Jereh will subscribe for shares in Plexus totalling up to 5% of its issued share capital under the arrangement at a price of 180 pence per share. Yantai Jereh also will have the right to increase its stake to 10% in Plexus under a twelve-month agreement. Yantai Jereh will also the right to appoint a non-executive director to Plexus' board.
Shares in Plexus were up 11% to 223.00 pence in early trade, one of the best performers in the AIM All-Share.
"I am delighted that Plexus and Jereh have entered into the agreement which we hope will enable us to bring Plexus' POS-GRIP technology to the important and growing Chinese market and other relevant Asian territories," said Ben Van Bilderbeek, Plexus' chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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