Business
Proposed Acquisition of Comarco Group
Proposed Acquisition of Comarco Group.
About this update from Everest Global Plc
[{"type":"text","content":"\n \n10 June 2019\n\nAnglo African Agriculture plc\n\n(“AAA†or the “Companyâ€)\n\nProposed Acquisition of Comarco Groupand associated port operations\n\nProposed change of name to Agulhas Group Africa plc\n\nAAA is pleased to announce that it has signed conditional share purchase agreements to acquire the entire issued share capital of a number of companies within the Comarco group of companies that are based in Kenya and engaged in the port and marine logistics business (the \"Proposed Acquisition\"). The consideration will be USD 30m, payable in AAA new ordinary shares at 0.5p per share. The companies are: Consolidated Marine Contractors Limited (CMC); Comarco Properties (EPZ) Limited (CPL); Kenya Marine Contractors (EPZ) Limited (KMC); Touchwood Investments Limited (TIL) and Comarco Supply Base (EPZ) Limited (CSB) ( “Comarco Groupâ€). The Proposed Acquisition is subject, inter alia, to an equity fundraising, the publication of a prospectus and shareholder approval in general meeting.\n\nFollowing a strategic review in 2018, AAA has been actively seeking to expand its activities beyond the agricultural sector while still utilising its directors’ experience and network in sub-Saharan Africa. AAA announced on 30 August 2018 a proposed loan facility to Comarco Group to help fund its working capital which was advanced to Comarco Group in November 2018. This was intended to be the first step in the diversification of AAA’s revenues and to significantly grow the business. During the course of identifying means to restructure Comarco Group, the Proposed Acquisition as a solution became evident as a mutually beneficial opportunity to help grow both companies. Comarco Group requires access to capital markets to facilitate growth in its business, particularly in light of the current oil and gas and infrastructure development off the coast of East Africa and the increased opportunities for marine logistics companies that such development will bring. In summary, the Proposed Acquisition would be in the best interests to both the shareholders of AAA and Comarco Group for the following reasons outlined below:\n\n\n\nAllows the Company to acquire a reputable port and marine logistics business at a strategic time when demand for such businesses have increased;\n\n\n\nComarco Group has US Dollar based revenue...