LONDON (Alliance News) - PME African Infrastructure Opportunities PLC said that tender offers to shareholders form part of its plans, after the investment company reported a net loss in 2014 and a fall in net assets.
In a statement, the company said it made a USD16.6 million net loss in 2014, compared with a net profit of USD2.6 million in the prior year. Net assets fell to USD18.3 million from USD35.0 million. Net asset value per share was down to USD0.24 from USD0.46.
Since the end of 2014, PME African Infrastructure Opportunities has completed the sale of subsidiary PME RSACO (Mauritius) Ltd, which held the group's 50% stake in Sheltam Holdings (Pty) Ltd, some intercompany loans, and seven C30 locomotives currently owned by PME Locomotives (Mauritius) Ltd, all for USD11.5 million.
The company's investing policy is to realise its remaining assets and make returns to shareholders.
There are plans for a tender offer to buy back shares from shareholders following the end of the six month warranty period connected to the USD11.5 million sale deal. The company said it hopes to ask shareholders for their approval of the tender plans inside 2015.
The company estimated that there will be available net cash of about USD8.0 million to fund the tender offer.
"Dependent on the timing and quantum of the future asset realisations, the company expects to consider further tender offers in the future," the company said.
PME African Infrastructure Opportunities has an option agreement over the three locomotives it still owns.
The option on the three locomotives should produce a minimum of USD4.25 million cash by the end of 2016. It is difficult to assess when the building in Dar-es-Salaam will be sold but the board will focus its efforts on disposing of this asset," Chairman Paul Macdonald said.
Shares in PME African Infrastructure Opportunities were down 17% at USD0.120 on Friday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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