D1 Oils shares rise 20% after new sale talks

May 7 2010 by Chris Knox, The Journal

BIOFUELS company D1 Oils has confirmed that it is in advanced talks with two parties over the sale of the business and has given itself a two-month deadline in which to seal a deal.

The listed company, which was founded by North East entrepreneur Karl Watkin, saw its share price jump over 20% to 5.5p, after issuing the statement, saying that the interested parties had indicated that they “may” make an offer over the coming weeks.

Despite a lack of certainty, those close to the company believe this latest announcement is far more positive than the one made in November.

Back then, D1 first announced that it had received a number of approaches.

Although the company said that nothing had been agreed, it did say that one party had offered a cash-only deal, while the other would look to purchase enough shares to become its main shareholder.

The statement said: “The board of D1 Oils can confirm that offer discussions have progressed to the extent that two parties have indicated that they may, subject to due diligence, make offers to the company – in each case at a substantial premium to the current share price.”