28th Jan 2015 16:02
LONDON (Alliance News) - Active Energy Group PLC shares more than doubled Wednesday after it said it has received three non-binding, conditional offers for its Canadian forestry joint venture company, KAQUO Forestry & Natural Resources Development Corp.
The company, a supplier of industrial wood chip and timber, said the offers, in aggregate, amount to around USD300 million, and are subject to further due diligence.
Active Energy shares skyrocketed Wednesday afternoon, trading at 11.25 pence, up 7.35 pence or 188.5%
"The offers were received as a result of the pre-marketing roadshow, to subscribe for a non-controlling equity stake in a yet to be incorporated subsidiary of KAQUO to commercialise approximately 108,000 hectares of the aforementioned Métis Settlements forestry assets," the company said.
Active Energy said that KAQUO intends to accept one of the offers, and to enter into "detailed negotiations" of legal agreements with the successful bidder.
"A further announcement will be made no later than when such negotiations, which are expected to last several months, are concluded," it said.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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