24th Jul 2014 11:38
LONDON (Alliance News) - Maple Energy PLC shares soared on Thursday after it said it has received an approach which could possibly lead to a cash offer for the entire issued share capital of the company.
The sugar cane and ethanol production company with assets in Peru said that the approach is highly conditional and preliminary in nature so no assurances can be given that a formal offer will be forthcoming or that any transaction will occur.
It didn't name the party that had made the takeover approach.
Maple Energy shares more than doubled on AIM to 19.75 pence on Thursday on volume of 152,606 shares, compared to normal daily volume of 1,555 shares.
The news comes after Maple Energy said in April that its losses widened in 2013, despite good growth in revenues, due to lower yields and volumes of ethanol produced, and higher-than-expected maintenance costs.
"Financial results were below expectations mainly due to lower yields and volumes of ethanol produced and higher-than-anticipated maintenance costs, against a relatively fixed agricultural cost base, in respect of the ethanol business," Chairman Carlos Palacios said in a statement in April.
In June, Maple said it is still actively seeking equity investments from strategic investors for its ethanol business. The company said at the time that this is progressing, and it was hoping to close a transaction in coming months.
By Tom McIvor; [email protected]; @TomMcIvor1
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