Corporate News
Atlas Development CEO Carl Espery at a past event. PHOTO | FILE
By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com
In Summary
- Atlas Development says it is in the advanced stages of discussions with potential takeover targets in Kenya, Tanzania and Ethiopia.
- The firm revealed the impending deals while announcing a net loss of Sh548 million for the six months ended December.
UK logistics and engineering firm Atlas Development
is set to close a series of acquisition deals in the region later this
year as part of its expansion strategy.
The firm, which is listed on the Nairobi Securities Exchange
(NSE) and London Stock Exchange (LSE), says it is in the advanced
stages of discussions with potential takeover targets in Kenya, Tanzania
and Ethiopia.
Atlas, which has made Kenya its African
headquarters, revealed the impending deals while announcing a net loss
of Sh548 million for the six months ended December.
“Complementary acquisition targets have been
identified and we are in advanced discussions with a number of possible
targets,” Ian Mann, the firm’s non-executive chairman said in a
statement.
“All of the targets in question would provide us
with sectorial and geographic diversification, additional visible
revenue and would help build critical mass.”
Atlas services major upstream oil companies like
Tullow and Africa Oil through provision of logistics, storage and
medical facilities to staff working in remote drilling sites.
Other services it provides include fuel distribution, fleet maintenance, catering and laundry services and risk management.
Plummeting crude prices have, however, caused
jitters among its clients as more exploration firms move from offshore
to onshore activities to hedge against the prevailing circumstances.
Atlas recently announced that it will, in
partnership with the Geothermal Development Company (GDC), begin
drilling geothermal wells locally.
Director for East Africa Nick Arnold on Tuesday
declined to disclose the exact number of firms they were targeting as
well as the acquisition budget.
“At this stage, I can neither disclose the number
of businesses we are in talks with nor the specific countries where each
is located,” Mr Arnold told Business Daily.
“We however expect that in the next four to six
months, the company will announce at least one of several deals we are
pursuing.” Atlas, which is listed on the NSE’s Growth and Enterprise
Market Segment (GEMS), entered the country by buying a 49 per cent stake
in Ardan Logistics Kenya.
The UK firm in October bought the remaining stake
in the company and announced that it is eyeing oil and gas businesses in
Djibouti in a bid to grow its revenue.
The buyout, which the firm says will be concluded
by July, has gained the Atlas Sh291 million in revenue for the six
months to December and a gross profit of Sh94 million, they announced on
Tuesday.
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