A proposed plastic recycling company reverse company takeover has been announced by Nu-Oil and Gas.
The AIM-listed shell company has not named the business involved in the reverse takeover, but has said it is a “European-based plastics recycling and reprocessing business that has a well-established trading history”.
It is the intention of the potentially enlarged company to act as a consolidation vehicle in the sector.
With the reverse acquisition allowing the recycling business to become a public company, shares in Nu-Oil and Gas have been suspended as required by the AIM market rules.
The proposed acquisition will bring with it a new chief executive with significant experience in the recycling sector. The board will also be strengthened with new appointees and a combination of commercial and sector experience.
However, the acquisition of the plastic recycling company remains subject to a number of variables including, but not limited to, completion of due diligence, agreeing definitive documentation, compliance with regulatory requirements and shareholder approval.
Nu-Oil and Gas non-executive chairman Jay Bhattacherjee said: “We are delighted to have entered into heads of terms to acquire a business that will be transformational for Nu-Oil.
“Today marks the first step towards delivering on the company’s refocused strategy of increasing value for shareholders by targeting opportunities in the environmental industries sector.”