(Alliance News) - Anglo African Agriculture PLC on Monday said it will 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 will raise USD22 million.
The company will raise 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.
Shares in Anglo African were 7.9% lower at 7.50 pence each in London on Monday afternoon.
Anglo African said: "Proceeds from the fundraising will provide the enlarged group with enhanced flexibility to take advantage of future opportunities in line with its growth strategy. The proceeds will allow the enlarged group to reduce its leverage through bank debt and creditor repayment. The proceeds will also be used to conduct asset maintenance and upgrades as well as provide working capital headroom for its growth strategy."
The company will then apply for its enlarged share capital to be admitted on the main market of the London Stock Exchange. This is expected to occur in December.
If this is successful, the company will change its names to Agulhas Group Africa PLC.
By Eric Cunha; ericcunha@alliancenews.com
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