Obtala Limited Disposal (6167K)
September 23 2016 - 2:00AM
UK Regulatory
TIDMOBT
RNS Number : 6167K
Obtala Limited
23 September 2016
23 September 2016
Obtala Limited
("Obtala", the "Group" or the "Company")
(AIM: OBT)
Disposal of African Home Stores Retail Outlets
Obtala Limited, the African focused agricultural and forestry
company, is pleased to announce that it has, through its wholly
owned subsidiary African Home Stores Ltd. ("AHS"), finalized an
agreement to dispose of its 72.69 per cent. owned chain of Lifes'
Comfort Solutions ("LCS") retail outlets in Lesotho, for a cash
consideration of $100 (one hundred US Dollars) to Rystabelz PTY Ltd
with completion expected within 90 days, conditional upon all
minority shareholders in LCS having had an opportunity to exercise
their pre-emptive rights under the LCS articles of association or
otherwise agreeing to the sale.
In the Group's year-ended 31 December 2015, the Retail division
(including LCS as the division's only trading entity) made losses
before tax of approximately GBP0.75 million on turnover of
c.GBP3.125 million and as at that date had net liabilities of c.
GBP0.134 million. Deferred consideration of US$ 225,000 on the
original October 2014 purchase, as amended, remains payable in
monthly instalments by AHS with final payment due in June 2017.
Miles Pelham, Chairman of Obtala commented "the disposal of LCS
marks the last divestiture of non-core ventures, leaving the
Company solely focused upon its two remaining divisions - Tanzanian
Agriculture and Mozambican Forestry. Management attention and
energies can now swing fully to expanding production capacity
within these business lines, which is progressing well, whilst
avoiding continuing losses from Retail operations.
I wish Rystabelz good fortune in their activities in Lesotho and
hope they build LCS into a prosperous retail network that can help
enrich local communities as well as its shareholders."
The Group's results for the six months ended 30 June 2016 will
be announced on 30 September.
Obtala Limited
Miles Pelham - Chairman
Paul Dolan - CEO
www.obtala.com +44 (0)20 7099 1940
ZAI Corporate Finance Limited (Nomad)
Peter Trevelyan-Clark/John Treacy/Jamie Spotswood +44 (0)20 7060 2220
Brandon Hill Capital (Broker)
Jonathan Evans +44 (0)20 3463 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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