DECA

Update on the MBO of Sierra Leone Cocoa Assets

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 Europe

Tel: +44 (0) 20 7894 7000

Michael Reynolds

Cantor Fitzgerald Europe

Tel: +44 (0) 20 7894 7000

 


This information is provided by RNS
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