Aberdeen firm to seek approval for buy back
ABERDEEN-based oil and gas engineering firm Plexus Holdings has announced plans to buy back £2.5 million shares in the firm from a Russian partner in a deal directors reckon will speed its progress in a key market.
Plexus has agreed to acquire around 5 million shares in the company from LLC Gusar for 50.5p each, subject to approval by other shareholders.
It said Gusar is expected to use the funds to finance the acquisition of two wellheads and associated equipment, under a £1.4m sale announced by Plexus in February last year.
Gusar expects to be able to rent the equipment to oil and gas companies in Russia, with royalties payable to Plexus.
Chief executive Ben van Bilderbeek said Plexus thinks the share buyback will help accelerate the delivery of the equipment. It positions Gusar to fulfill anticipated rental orders in one of the world’s three major hydrocarbon producers.
Plexus was hit by cuts in exploration activity in areas such as the North Sea amid the downturn triggered by the crude price slump between June 2014 and early 2016.
It sold its exploration wellhead business to TechnipFMC for an initial £15m in 2017 but a licensing agreement with Gusar was not affected by the deal. Plexus will seek shareholder approval for the buyback from Gusar at a general meeting on February 1.
Source: The Herald
Published: 15-01-2019
