(Alliance News) - Anglo African Agriculture PLC on Tuesday said Comarco Group has been given permission to designate its Mombasa facility as a private port.
Shares in Anglo African Agriculture, which owns food product manufacturer Dynamic Intertrade Pty Ltd, soared 38% to 0.48 pence in morning trade.
On June 10, Anglo African Agriculture agreed to acquire a number of Comarco companies based in Kenya and involved in marine logistics. Should the deal go ahead, Anglo African Agriculture will issue USD30 million in new shares as consideration and current shareholders in Anglo African Agriculture will have a minority interest of less than 5% in the enlarged company.
Since the acquisition proposal was announced, Comarco has obtained consent from the Kenya Revenue Authority to make the Mombasa port into a private port, which Anglo African Agriculture believes "will open up considerable business opportunities for the Comarco Group in future" as Comarco will be able to consolidate and expand port operations into a wider user base, having previously been limited to exports only as it had been registered as an export processing zone.
In line with this new status, Comarco has signed a one year 500,000 million tonne iron ore export contract with Samruddha Kenya Ltd and finalised a six month 200,000 tonne iron ore export contract with RK Sanghani Ltd.
"The designation of the Comarco port as a functional private port broadens our capabilities and opens up a raft of new opportunities. We are already seeing these benefits come through with the signing of two significant contracts."