Atlas Logistics chief executive officer Carl Esprey. PHOTO | DIANA NGILA
By GEOFFREY IRUNGU
In Summary
- Atlas Development, an oil and gas logistics firm cross-listed on the Nairobi and London bourses, has acquired Ethiopia-based East Africa Packaging Holdings Limited (EAPH) which makes glass bottles.
- Atlas chief executive Carl Esprey asked shareholders to approve the proposed increase in the number of shares.
Atlas Development, an oil and gas logistics firm
cross-listed on the Nairobi and London bourses, has acquired
Ethiopia-based East Africa Packaging Holdings Limited (EAPH) which makes
glass bottles.
Atlas chief executive Carl Esprey asked shareholders to approve the proposed increase in the number of shares.
“The acquisition of EAPH is contingent on gaining
approval to raise the headroom, so we encourage shareholders to support
these resolutions so that we can move forward at pace to implement our
vision to develop and broaden our business offering,” said Mr Esprey in a
statement.
The acquisition is in line with Atlas Development’s
establishment of an industrial division intended to diversify revenues
away from logistics.
“Atlas has created an industrial division to
broaden sector focus and diversify cyclical services revenue streams.
Industrial division has entered into an agreement to acquire EAPH
focused on the growing beverage industry,” said the firm in the
statement.
The company is looking to reduce dependency on the
oil and gas sector whose declining fortunes are expected to drive down
the company’s revenues to Sh1.5 billion for 2015.
“Following the decline in the oil price, trading
conditions for the company’s core services division remain very
challenging, with revenue for the 12 months to December 31, 2015
expected to be approximately $15 million (Sh1.5 billion),” said the
company.
As a result of the reduced business, the company
has suffered on the Nairobi Securities Exchange with its price falling
by nearly 70 per cent year to date
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