LONDON (Alliance News) - PME African Infrastructure Opportunities PLC Thursday said it is in negotiations to acquire the remaining 50% stake in Sheltam Holdings Ltd it does not currently own from Sheltam's managing director and the Sheltham Rail Trust, in a deal which would constitute as a reverse takeover.
The infrastructure project investors, which also published its full-year results Thursday, said it will issue new PME shares as part of the deal.
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.
The proposed 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.
PME said the deal, subject to the approval of the South African Competition Commission, remains under negotiation, and there is no certainty it will be completed.
PME said it swung to profit in the full year. The company posted pretax profit of USDS2.9 million for 2013, compared with a USD4.8 million loss a year earlier, as revenue crept up to USD783,000 from USD766,000.
In the previous year the company was hit by a USD7.2 million loss from the impairment of a loan to an associated company. This subsequently was reversed into a gain of USD1.9 million during 2013.
PME shares were suspended from trading Thursday due to the negotiations for the reverse takeover. They were last quoted at 0.229 pence per share.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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