Abchurch has advised Roxi Petroleum plc, the Central Asian oil and gas company with a focus on Kazakhstan, on the proposed merger transaction relating to its key Eragon assets, BNG.
The merger is with Baverstock Quotaholders and will be achieved by Roxi, which will increase its effective shareholding in its principal asset in Eragon from 59% to 100%, thus increasing Roxi’s interest in their principal asset BNG in Kazakhstan from 58.41% to 99%. Controlling 99% of BNG will remove any funding constraints associated with maintaining the current structure.
The consideration for the long planned merger, which is payable in new Roxi shares to Baverstock, is approximately £62m (calculated at the closing price of Roxi’s shares prior to announcement).
Completion of the merger is subject to independent shareholder approval and regulatory consents.
Roxi Petroleum has been listed on AIM since May 2007.
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