LONDON (Alliance News) - PME African Infrascture Opportunities PLC Friday said it has agreed to acquire the remaining 50% stake in Sheltham Holdings Ltd it does not currently own, in a deal which would constitute a reverse takeover.
The acquisition, which will result in PME ceasing to be an investing company and becoming the holding company of a trading group, will be satisfied entirely by the issue of 19.7 million new PME shares.
Sheltham is a mining, aviation and marine business operating in Africa. It owns and operates one of the largest privately owned fleet of mainline locomotives throughout southern Africa.
Last month, the company said it was in negotiations with Sheltam's managing director and the Sheltham Rail Trust to complete the deal.
The acquisition will require the readmission of PME's shares. From readmission, the company will continue as a trading company, operating, through its subsidiaries including PME RSACO (Mauritius) Limited, an African focussed transportation services business.
"Sheltam is a significant player in the rail services market and has demonstrated a steadily improving operating performance in recent years," Chairman Paul Macdonald said in a statement.
"There are significant opportunities for Sheltam to exploit its position as a transport services provider, offering its current customer base additional services, and developing new transportation solutions in a number of countries in which the Sheltam Group is not currently active," he added.
PME shares are currently suspended from trading due to the takeover negotiations.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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