Significant impoact on DOO23 Nov 2009 08:27
ESV Group Plc, the agribusiness and logistics investment company, announces the signing of a definitive Agreement for the sale of its Jatropha plantations business and associated assets in Mozambique to SAB Mozambique SA, a company controlled by two Italian energy companies, Api Nova Energia SrL and Seci Energia SpA. The total consideration for the business is US$4 million.
The completion of the sale is subject to certain considerations being satisfied. The payment schedule comprises US$1.1 million payable in cash on closing, US$1.0 million payable upon receipt by the Group of satisfactory certificates of the discharge of past local labour, tax and social security costs and $1.9 million upon receipt by the Group of the jatropha farming rights for one of the two plantation areas, which is currently awaited from the Mozambique authorities. From the purchase consideration, a payment of US$0.5 million is to be made to the former holders of the land concerned.