Troubled
Atlas African Industries says it is seeking new business acquisitions in
the continent following its decision to exit Ethiopia by selling its
bottle manufacturing plant.
The loss-making logistics
firm, which is listed on the Nairobi bourse, announced on Friday that it
is divesting from TEAP Glass after Ethiopian authorities forcefully
seized its $2.4 million (Sh240 million) following a tax dispute.
The
firm disclosed that Atlas’ minority shareholders Innovative Africa
Investments Ltd (which owns a 14.22 per cent stake) and Eagle
Investments Ltd (4.26 per cent) will pay $1.6 million in cash and sell
back their entire 18.48 per cent shareholding.
Atlas now says they are in the market to acquire companies that are presently operating in the continent.
“The
company’s planned strategy following completion of the disposal is to
make an acquisition or acquisitions of one or multiple African focused
businesses operating in the consumer sector,” Atlas said in a notice to
shareholders.
“In
this regard the board are looking for operational and scalable
businesses, which have been significantly de-risked, where possible.
Preference will be given to businesses which are already generating
revenue.
The company disclosed that it would suffer a
$254,216 (Sh25.4 million) hit from disposing of TEAP Glass where it had
invested about $5 million (Sh500 million) to set up the jinxed bottling
plant.
Atlas delisted from the London Stock Exchange on Friday after failing to hire a corporate adviser, but said it would continue trading on the Nairobi Securities Exchange.
The
company’s fortunes began tumbling when it lost its contracts with
Tullow Oil amid falling crude oil prices, which forced the firm to
liquidate its Kenyan operations to pay debts.
No comments :
Post a Comment