LONDON (Alliance News) - Obtala Resources Ltd on Thursday said it has signed a deal to buy a controlling stake in Lesotho-based Lifes' Comfort Solutions, which operates five retail outlets in the southern African country.
Obtala will pay USD800,000 in installments over 24 months for a 73% stake in the company, which it said delivered USD10.5 million in revenue in the last financial year.
Obtala, the agri-processing, farming and timber company, said the deal provides a distribution outlet direct to market for its own-label and branded products.
"This acquisition represents the final important link in establishing a vertically integrated business chain in Africa that we have been busy establishing in recent years," said Obtala Chairman Francesco Scolaro.
Obtala shares were trading up 0.3% on Thursday at 8.78 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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