LONDON (Alliance News) - PME African Infrastructure Opportunities PLC Friday said it has entered into a deal to sell the majority of its rail assets for USD11.5 million and has signed an option agreement to dispose of the remaining rail assets.
PME, which invests in infrastructure and infrastructure-related assets in sub-Saharan Africa, said it has reached a deal to sell its PME RSACO (Mauritius) Ltd subsidiary, which holds a 50% stake in Sheltam Holdings Pty Ltd, and seven C30 locomotives currently owned by PME Locomotives (Mauritius) Ltd for USD11.5 million in cash.
It is selling the assets to PCF Investments Ltd, a subsidiary of Principle Capital Investments and an affiliate of PUG Investments Ltd, which holds an 11% stake in PME.
It has also struck a deal to sell its remaining rail assets via a put option with RSACO, under which it will agree to acquire the three remaining trains owned by PME Locomotives if it is unable to find a third-party buyer for the assets.
"This has been a complicated and difficult transaction to execute and the board are delighted to receive cash consideration which represents a significant premium to the company's current market capitalisation," said PME Chairman Paul Macdonald.
PME African shares were untraded Friday, having last traded at 0.0600 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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