MetalNRG PLC (LON:MNRG) told investors it is to proceed with a deal to acquire a UK oil and gas business, although due to COVID-19 restrictions sealing the formal completion of the transaction will be delayed.
The confirmed it had completed technical, financial and legal due diligence which was deemed satisfactory and it is now finalising a share purchase agreement to acquire the privately-owned company.
It expects to complete the transfer of the oil and gas company’s equity within the next three-to-four weeks.
“We are very pleased with the outcome of the due diligence, which confirmed our initial projections, as well as with the collaborative relationships with the vendor, our partners and the UK regulators,” said Rolf Gerritsen, chief executive.
“We are now looking forward to completing the acquisition and we are confident we are fully prepared to take control of the running of this Oil & Gas operation.”
MetalNRG is acquiring the oil and gas company via a special purpose vehicle, 50% owned by the AIM-quoted firm alongside private investors which will hold the other 50%. At board level, the cast vote will be MetalNRG’s.