Plexus Holdings plc (AIM:POS) – significant licensing agreement signals the way ahead?
The framework agreement signed in Beijing with Yantai Jereh Oilfield Services Group Co., Ltd represents a big move for the Aberdeen based oil equipment group and offers a glimpse of possible future strategy.
Jereh is a the major Chinese oil services provider of integrated solutions of oilfield equipment and services, and the two parties will now work together to formalise a binding license agreement to enable Jereh to manufacture and sell Plexus’ wellhead equipment to the Chinese and wider Asian oil and gas markets. Jereh is a public company listed on the Shenzhen stock exchange with a market capitalisation of over US $5.8bn and 5,000 employees. The Agreement remains subject to legally binding agreements being finalised and signed which would, if signed, grant to Jereh an exclusive licence in China and other designated…