(Alliance News) - Anglo African Agriculture PLC said Tuesday it has agreed to extend the long stop date for its proposed reverse takeover of Kenyan marine logistics firm Comarco Group.
Both companies have verbally agreed to extend the date, and will obtain a signed extension in the new year.
The extended date was due to "disappointing" appetite from UK institutions for funding the acquisition as smaller funds struggle with consequences from the UK General Election, Brexit, and Woodford Investment Management.
The group however noted significant interest in international institutions, as well as private equity and strategic investors.
In early November, Anglo African Agriculture said it would press on plans to complete a reverse takeover of Kenyan marine logistics firm Comarco Group.
As part of the acquisition, Anglo African, which also owns South African food producer Dynamic Intertrade (Pty) Ltd, said it would raise USD22 million, comprising USD16 million in a share placing, at 10 pence each, and USD6 million in a vendor placing on behalf of certain shareholders of Comarco Group.
Looking ahead, Anglo African will continue to proceed with the acquisition through a public equity raise, but will also consider expanded structures where private equity and strategic investors can invest in Comarco.
The company will then apply for its enlarged share capital to be admitted on the main market of the London Stock Exchange.
Discussions are ongoing with numerous groups to decide the most beneficial structure and investment partners.
"We are pleased with the very strong interest shown by investors and their very high level of engagement in the process. Although disappointed by unfavorable and uncertain market conditions in London, I believe evaluating additional structures is in the best interests of AAA shareholders," said Chief Executive Simon Philips.
"We remain very excited about Comarco Group's activities and look forward to updating the market on progress in the future," Philips added.
Shares in London-based Anglo African Agriculture were up 2.0% at 7.80 pence each on Tuesday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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