Fox Williams LLP acted for Plexus in connection with a Licence Agreement with Yantai Jereh Oilfield Services Group Co., Ltd (‘Jereh’), which represents a transformational milestone for Plexus and is in line with its strategy of significantly increasing the global reach of its POS-GRIP® wellhead equipment.
In addition, Fox Williams acted for Plexus in connection with a Subscription Agreement with Jereh International (Hong Kong) Co., Ltd (‘Jereh HK’), under which Jereh HK will subscribe for 4,468,537 new ordinary shares in Plexus, at a price of £1.80 per share representing a total consideration of £8,043,367.
Under the terms of the Licence Agreement, Jereh has been granted an exclusive licence in China and other designated Asian territories, as well as Brazil, India, and the Middle East, to manufacture and supply Plexus’ products utilising Plexus’ trademarks, patents, technology, know-how and other intellectual property and technical services. Plexus is entitled to a range of royalty percentages from Jereh in respect of the rental and sale of different Plexus POS-GRIP wellhead equipment applications made under the Licence Agreement.
Pursuant to the terms of the Subscription Agreement, Jereh HK will own 5% of the enlarged issued share capital of Plexus. Jereh also has an option, to exercise within the next 12 months, to subscribe for further shares in Plexus such that following its exercise of this option, it could own up to a further 5% of the enlarged issued share capital of Plexus.
Paul Osborne, senior partner at Fox Williams, led the firm’s corporate team and was supported by corporate associate Elliot Cowan. Nigel Miller, a partner in the firm’s Commercial and Technology group led the Licence Agreement negotiations, supported by associate Laura Lumby.
Senior partner, Paul Osborne, commented “This represents an important strategic alliance for Plexus and will enable them to expand their international footprint and accelerate their growth. We are delighted to have been able to support Plexus on this transaction and achieve such a positive and successful outcome.”
Plexus Holdings Plc Finance Director, Graham Stevens said: “Paul Osborne and his team initially worked with us to enter into a Framework Agreement with Jereh at the Beijing Oil Show in March 2015, which with a seven hour time difference proved quite challenging, both for Fox Williams and ourselves. Since March we have all been working through a complex due diligence, corporate, and intellectual property driven process which culminated in a successful closing as announced to the markets on 2 July 2015.”