9th Sep 2015 08:20
LONDON (Alliance News) - Max Petroleum PLC on Wednesday said the Ministry of Energy of the Republic of Kazakhstan has approved its conditional subscription agreement with AGR Energy.
Max reached a deal with AGR Energy in July, which would result in AGR owning around 63% of Max. The deal will "alleviate its severe immediate financial stress", Max had said at the time.
Max conducted a conditional cash subscription with AGR to raise GBP9.0 million by issuing AGR with 3.83 billion new shares at 0.2341 pence per share, which will result in AGR holding 63.8% of the enlarged issued share capital of the company. As part of the subscription, AGR also will provide Max with a GBP1.3 million convertible loan comprised of two tranches of GBP162,623 and GBP1.1 million.
AGR Energy Group is a special-purpose vehicle that has been set up by the Assaubayev family established for the purpose of the subscription. The family are long-term investors in natural resources and metals and mining, according to Max Petroleum.
Max's Kazakh-based subsidiary is currently undergoing a rehabilitation process in the country, similar to the Company Voluntary Arrangement in the UK which provides a company with protection against creditors. This will provide a framework for Samek International LLP, the unit in question, to reach an agreement with its creditors on a repayment timetable.
Max Petroleum said it still has to get approval for the AGR deal from Kazakh competition authorities.
Shares in Max are currently suspended.
By Sam Unsted; [email protected]; @SamUAtAlliance
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