LONDON (Alliance News) - PME African Infrastructure Opportunities PLC Friday said the South African Competition Commission has approved its acquisition of the remaining 50% stake in Sheltam Holdings Ltd it does not currently own, in a deal which will 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 to the owners of Sheltam.
Sheltam 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 Sheltam 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.
An extraordinary general meeting will be held on August 11 to gain shareholder approval.
PME shares are currently untraded on AIM in London due to the takeover negotiations.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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