(Alliance News) - Volga Gas PLC on Monday announced the acceptance of a GBP19.2 million takeover offer from GEM Capital Holdings Ltd.
GEM is a Cyprus-based company wholly owned by Antoly Paily, which makes investments in specialised chemicals, nanomaterials and technology companies, as well as interest in oil & gas assets.
Under the acquisition's terms, GEM will acquire the Russia-focused oil & gas firm' for 23.71 pence per share, reflecting a 3.2% discount to the company's closing price of 24.50p on Friday last week.
Shares in Volga Gas were down 7.8% at 22.60 pence on Monday in London.
The acquisition is conditional on gaining at least 75% of shareholder approval at an upcoming court and general meeting, as well as the scheme being sanctioned by the High Court of England & Wales.
So far, GEM has obtained irrevocable undertakings to accept the offer from around 64.7 million shares, reflecting around 80% of the company's issued share capital.
"We are delighted to be announcing this all cash offer for Volga Gas. We believe that Volga Gas has significant potential but that, given its size, operating environment and geographic focus, it would fare far better as a private company with a simplified and more cost-effective corporate structure, while benefitting from our support and assistance. Our offer provides Volga Gas Shareholders with a certain cash exit, in full, at a premium to the prevailing market share price, prior to the company's launch of its formal sale process," said GEM Director Thomas Keane.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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