24th Feb 2014 13:59
LONDON (Alliance News) - Shares in Sacoil Holdings Ltd jumped Monday after it said it had signed an expression of interest with an investment manager for the Mozambique government to look into gas distribution opportunities in southern Africa.
The company's shares were suspended early Monday pending an announcement and resumed trading when the company pout out its statement. The stock was up 16% to 3.75 pence Monday afternoon.
In its statement, Sacoil said it had signed the expression of interest with the Instituto De Gestão Das Participações Do Estado, an entity that manages investment portfolios and shares on behalf of the Government of the Republic of Mozambique, and The Public Investment Corporation Ltd.
It said the expression of interest purely governs the preliminary talks between the parties and formalises their relationship. It wants to conclude a formal memorandum of understanding by the end of March.
Sacoil warned shareholders to exercises caution in trading in its shares until further news is released.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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