LONDON (Alliance News) - Shares in Anglo African Agriculture PLC flourished Thursday as the company signed a memorandum of understanding for the financing of a Kenyan logistics port.
Shares in the agriculture investment company jumped 54% to 0.77 pence on Thursday, having earlier set a new 52-week high of 1.04p.
Under the memorandum's terms, Anglo African will provide a 24-month loan in order to fund the growth of Kenya-based port and logistics group Comarco Group.
The loan will come up to USD1.0 million at a rate of 12% per annum increasing to 15% after nine months.
The port facility is privately owned and totals 16.2 acres including over 40,000 square metres of storage space, office space and facilities, as well as crawler cranes and a 24-hour operations centre.
Although the specific use of funds has not yet been agreed, it will include the repayment of Comarco's historic debt as well as use for working capital purposes.
"This is intended to be the first step of an exciting diversification for AAA, which the directors believe will allow the company to significantly grow its business," Anglo African said in a statement.
"Comarco presents a high-quality growth proposition and access to a key market player in the port and marine logistics industry of Eastern Africa, at a time when oil servicing and port logistics facilities are key to the expansion and development of large hydrocarbon deposits discovered off the East African coast," the company added.