Agriterra Ltd Update on the MBO of Sierra Leone Cocoa Assets (2800U)
January 16 2017 - 10:30AM
UK Regulatory
TIDMAGTA
RNS Number : 2800U
Agriterra Ltd
16 January 2017
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
16 January 2016
Agriterra Ltd ('Agriterra' or the 'Company')
Update on the MBO of Sierra Leone Cocoa Assets
Further to its announcements of 5 October 2016 and 6 January
2017 the Company advises that the proposed management buy-out
transaction (the "MBO") of the Company's Sierra Leone cocoa assets
(held through equity interests in Baranca Tide Limited and West
Africa Cocoa Services Limited, the "Target Companies"), will not be
completed as anticipated as the MBO team has failed to secure the
finance required to complete the MBO. As advised previously, in
such circumstances, the ownership of the Target Companies reverts
to the Company.
The Target Companies have a collective current book value of
approximately US$350,000 and the underlying assets comprise the
necessary infrastructure from which a large scale commercial cocoa
plantation and trading business can be developed in Sierra Leone.
The Company will now work towards achieving maximum shareholder
value from the Target Companies and will consider all avenues to
achieve this, including (without limitation) disposal and further
development.
Whilst the funds which would have been received from the MBO
would have bolstered the Company's cash reserves, the Company's
head-office treasury position remains strong at approximately
US$2.3m.
** ENDS **
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0)
20 7408 9200
Daniel Cassiano-Silva Agriterra Ltd Tel: +44 (0)
20 7408 9200
David Foreman Cantor Fitzgerald Tel: +44 (0)
Europe 20 7894 7000
Michael Reynolds Cantor Fitzgerald Tel: +44 (0)
Europe 20 7894 7000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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