MX Oil announced Monday that it has received a formal offer from “a credible third party” for the whole of its Nigerian investment.
The value of the offer represents several multiples of the company's current market capitalisation, according to an MX Oil statement, and the firm’s directors believe that selling its investment on these terms, if completed, would be more attractive to shareholders than raising equity to fund its investment to first oil at the current share price. As a result, the directors intend to progress discussions in order to conclude a sale in the short term.
MX Oil’s Chief Executive Officer, Stefan Olivier, commented in a company statement:
“Our Nigerian investment is now close to oil production and even in the current oil price environment, it has a significantly greater value than that implied by our current share price and valuation. We are committed to delivering the best funding option or asset transaction possible in the time available and expect to make further announcements to the market in due course.”
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