SOCO International PLC (LON:SIA) has confirmed it is evaluating a possible merger with Kuwait Energy.
In a statement, the company said: “SOCO confirms that, in the context of its stated objective to strategically reshape its business and grow its portfolio, it is evaluating a potential merger of equals with Kuwait Energy.
Remains committed to shareholder value creation
“Discussions with Kuwait Energy's newly-constituted Board of Directors are preliminary and no transaction terms have been agreed.”
“There can be no certainty that any agreement will be reached between SOCO and Kuwait Energy or its shareholders. SOCO will update the market as and when it is appropriate to do so.”
The company added that it remains committed to its strategy of shareholder value creation.
“The SOCO team, which has a track record of delivering shareholder value through asset acquisition and monetisation, delivering large scale developments, and returning capital to shareholders, evaluates M&A opportunities with reference to strict strategic, financial and operational criteria.
“Any transaction will be pursued only if it is determined by SOCO's Board to be in the best interest of shareholders.”
SOCO International shares rose 12.2p or 10.87% on Monday, changing hands at 124.8p.