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11 May 2016 07:00
Atlas African Industries Limited / Ticker: AAI / Index: AIM and NSE / Sector: Support Services
11 May 2016
Atlas African Industries Limited
('Atlas' or the 'Company')
Ethiopian Update
Atlas (AIM, NSE: ADSS) hereby provides an update regarding recent action taken by the Ethiopian Revenue and Customs Authority ("ERCA") in relation to Atlas and its Ethiopian subsidiary, TEAP Glass PLC ("TEAP").
ERCA's actions against Atlas and TEAP which are detailed below stem from a recently issued tax claim made against Ardan Risk & Support Services ("Ardan") which relates to periods prior to Atlas' involvement with Ardan (2010-2013). Atlas has received local legal advice that neither it nor TEAP has any liability for any such taxes under Ethiopian law.
The Company has been advised by its local team in Addis Ababa that on 10 May 2016, ERCA summarily removed approximately US$2.4m from TEAP's bank account with the Development Bank of Ethiopia. Atlas will take all available steps to ensure that the Company's funds are returned.
The Company is investigating these matters as a matter of urgency but based on initial feedback believes that the unilateral removal of these funds was unlawful and was in breach of an agreement reached with ERCA.
The Board assures shareholders that it will take all available steps to ensure that the Company's funds are returned and the Board is currently exploring legal, diplomatic and political routes in order to seek redress.
A further announcement will be made in due course.
** ENDS **
For further information please visit www.atlassupport.com or contact:
Carl Esprey | Atlas | Tel: +44 (0) 20 7408 9200 |
Callum Stewart | Stifel Nicolaus Europe Limited | Tel: +44 (0) 20 7710 7600 |
Ashton Clanfield | Stifel Nicolaus Europe Limited | Tel: +44 (0) 20 7710 7600 |
Edward Burbidge | Burbidge Capital | Tel: +254 (0) 202 100 102 |
Susie Geliher | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Charlotte Heap | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
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