Roxi doubles in value on news of big investment

Roxi Petroleum saw its shares more than double in value after a Kazakh businessman said he would invest 40m dollars in the firm at a huge premium to the current price.

Roxi Petroleum saw its shares more than double in value after a Kazakh businessman said he would invest 40m dollars in the firm at a huge premium to the current price.

Shares rocketed to 4.6p when the AIM opened, after the news that investor Kairat Alpamysovich Satylganov had agreed to subscribe for over 355m new shares at about 7p per share.

This would give the former chairman of two of the largest Kazakh banks, Halyk Bank and ATF Bank, a 37.5% holding in the firm.

However, as Roxi is not currently governed by the UK Takeover Code the deal would not trigger an automatic takeover offer.

Chairman Clive Carver said the investment would take care of the funding needs of Roxi for the foreseeable future and allow the Roxi management team to focus on developing its principal assets.

The first $10m will be paid on January 31st 2013, in exchange for the issue to Satylganov of 88,791,429 new shares.

This would represent around 14.57% of Roxi's current issued ordinary share capital and 12.71% of its enlarged share capital.

The remaining $30m will be called down by the board in exchange for a further 266,374,287 new Roxi shares, to fund work programme commitments at the company's assets.

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Why the world’s most important economic data release has unnerved markets
US Economy

Why the world’s most important economic data release has unnerved markets

The US added only 194,000 jobs in September, far shorter than the 500,000 that were expected. John Stepek explains why markets didn't react as they no…
11 Oct 2021