Volga Gas receives several proposals amid formal sale process

Russia-focussed oil and gas exploration and production company Volga Gas updated the market on its formal sale process on Friday, reporting that a number of non-binding proposals had been received.

The AIM-traded firm had announced on 7 April that its board would conduct a formal review of the various strategic options available to it, to maximise value for shareholders, including the potential sale of the company through a formal sale process, or the farm-out or sale of one or more of its assets.

It said on Friday that it had received a number of non-binding proposals regarding the sale of the company or its entire business and assets, both directly from potential buyers and through its financial adviser, Renaissance Capital.

Those potential buyers were required to sign a non-disclosure agreement, after which they received further information on the company.

Volga’s board said it was now engaged in ongoing discussions with certain of those parties about the sale of the firm, or its entire business and assets, and aimed to conclude negotiations on or before 30 September.

“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 cautioned in its statement.

“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.”

At 0904 BST, shares in Volga Gas were up 17.78% at 26.5p.