Rns31 Mar 2017 13:26
African Potash Ltd. (-)
African Potash Ltd.: Agreement to Acquire Strategic Stake in South African
Fertiliser Distributer
31-March-2017 / 08:00 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
The information communicated within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this announcement,
this inside information is now considered to be in the public domain.
30 March 2017
*AFRICAN POTASH LIMITED*
('African Potash' or the 'Company')
African Potash Limited / Epic: AFPO / Sector: Mining
*Agreement to Acquire Strategic Stake in South African Fertiliser
Distributer*
African Potash Limited is pleased to announce that it has today entered into
an agreement to acquire a strategic 21% equity stake in Advanced
Agricultural Holdings (Pty) Limited ('*AAH*', 'Advanced Agri') a South
African distributer of quality fertiliser and speciality products focussed
on enabling the grower to fine tune growing methods and achieve the optimum
results (the '*Acquisition*').
*Overview*
· African Potash's 21% stake in AAH will, on completion of the
Acquisition, provide the Company with access to the market for speciality
fertilisers across the continent.
· The consideration payable for the Acquisition will be paid in three
tranches as follows:
· the initial consideration of US$125,000 shall be satisfied by the
allotment of 221,601,740 new ordinary shares of nil par value in the
capital of the Company (the '*Initial Consideration Shares*'); and
· the second and third portions of the consideration will be calculated
by reference to AAH's 2018 and 2019 EBITDA, respectively and be
satisfied either in cash or African Potash shares, at the election of
the Company.
· Completion of the Acquisition is subject (amongst other matters) to the
passing at a general meeting (the '*General Meeting*') of the shareholders
of the Company of all resolutions required to authorise the directors of
the Company to issue the new shares in the capital of the Company as
consideration for the Acquisition and the taking of all other actions
required to effect the Acquisition (the '*Resolutions*'). The Company will
therefore be issuing a notice to shareholders to convene the General
Meeting as soon as practicable.
African Potash Executive Chairman, Chris Cleverly, said 'With the challenges
facing the COMESA region both, political and climactic, we are particularly
delighted with this transaction with Advanced Agri which gives African
Potash access to the mature market and revenues of South Africa. This
underpins our way forward as a trading business and g
Sign In
Follow the stocks
