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LONDON - Synergia Energy Ltd (AIM:SYN) has signed a Heads of Terms agreement to sell its remaining 50% working interest in the Cambay PSC in India to Selan Exploration Technology Limited for $14 million, the company announced Friday.
The deal follows a strategic review by Synergia’s board, which concluded that a full exit from Cambay would best serve shareholder interests. The transaction value represents approximately six times Synergia’s current market capitalization, according to the company.
Under the agreement terms, Selan will pay $0.5 million upon execution of the Heads of Terms, followed by $6.5 million after receiving Government of India approval for the transfer, and a final payment of $7 million 12 months after approval. All payments are subject to applicable taxes.
Synergia has granted Selan a 180-day exclusivity period to finalize a Sale and Purchase Agreement before seeking regulatory approval in India.
The two companies established their joint venture in February 2024, when Synergia transferred an initial 50% working interest to Selan in exchange for Selan carrying the costs of an agreed work program. That agreement received government approval in August 2024.
The proposed transaction will require shareholder approval under Rule 15 of the AIM Rules for Companies. Synergia plans to publish a circular and notice of General Meeting upon finalizing the Sale and Purchase Agreement.
The company stated it is reviewing its cost structure and forward strategy, with plans to return a portion of the proceeds to shareholders following completion. The current work program at Cambay will continue while the transaction progresses.
Based on the press release statement, Synergia cited the persistent gap between its net asset value and market capitalization as a factor in the decision to divest its remaining Cambay interest.
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