Plexus in buy-back deal with partner

Plexus Holdings has agreed to buy back 4.95 million shares in the company from its Russian partner Gusar.

The Aberdeen-based oilfield technology firm said the “off-market buyback” had an aggregate price of £2.5 million, equivalent to 50.5p per ordinary share.

In an innovative piece of financing, Gusar will use the cash to cover the acquisition of two of Plexus’ Pos-Grip jack-up exploration wellhead systems and equipment.

The sale was first announced in February 2018 on the back of a license agreement signed by the two companies in 2016.

The pact gave Gusar permission to make and rent Plexus’ exploration wellhead equipment for jack-up rigs in Russia, identified as a key market for the technology.

Plexus will seek shareholder approval of the share buyback deal at a general meeting in London on February 1. associated

Plexus chief executive Ben van Bilderbeek said: “We see the buyback as a positive move that enables the acceleration of the

“Acceleration of thedeliveryof the equipment into Russia”

delivery of the equipment into Russia, and positions Gusar to fulfil anticipated rental wellhead exploration orders in Russia, one of the world’s three major hydrocarbon producers.”

Gusar general director Alexander Beryozkin said: “We are delighted that after a period of intense work with Gazprom and other customers, we are preparing to enter the stage of participation in exploration drilling in Russia as soon as the 2019 drilling season.

“We have reached an agreement with Gazprom for the supply of mudline suspension systems localised for manufacturing in Gusar’s facilities in Russia, further to our license agreement with Plexus.”