Volga Gas plc: Update on Formal Sale Process
Volga Gas plc, the oil and gas exploration and production group operating in the Volga Region of Russia, is pleased to provide an update on its formal sale process.
On 7 April 2020, the Company announced that its board of directors (the “Board”) had decided to conduct a formal review of the various strategic options available to the Company to maximise value for shareholders, including the potential sale of the Company through a formal sale process (as referred to in the City Code on Takeovers and Mergers (the “Code”)) or the farm-out or sale of one or more of the Company’s assets.
The Company is pleased to report that it received a number of non-binding proposals regarding the sale of the Company or its entire business and assets, directly from potential buyers and through Renaissance Capital as financial adviser to the Company. Such potential buyers who wished to participate in the formal sale process were required to sign a non-disclosure agreement, after which they received further information on the Company.
The Board is now engaged in ongoing discussions with certain of these parties about the sale of the Company (or its entire business and assets) and aims to conclude negotiations on or before 30 September 2020.
As previously communicated, the Panel has granted a dispensation from the requirements of Rules 2.4(a), 2.4(b) and 2.6(a) of the Code such that any interested party participating in the formal sale process will not be required to be publicly identified under Rules 2.4(a) or 2.4(b) and will not be subject to the 28 day deadline referred to in Rule 2.6(a) of the Code for so long as it is participating in the formal sale process.
There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.
The Board reserves the right to alter or terminate the formal sale process at any time and in such cases will make an announcement as appropriate. The Board also reserves the right to reject any approach or terminate discussions with any interested party at any time.
