Acquires Mozambican Agricultu

RNS Number : 8241M

Agriterra Ltd

05 February 2009

 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

5 February 2009

Agriterra Ltd ('Agriterra' or 'the Company')

Completion of the acquisition of DECA, Compagri and Mozbife 

and completion of £2.36m placing 

Agriterra Ltd, the AIM listed company focussed on the agricultural sector in central and southern Africa, announces the completion of the acquisition by the Company's wholly owned subsidiary, Agriterra (Mozambique) Limited, of a 75% shareholding in each of Desenvolvimento e Comercializacao Agricola Limitada ('DECA'), Compagri Limitada ('Compagri') and Mozbife Limitada ('Mozbife'), the Mozambique agricultural trading, processing and ranching companies.

Phil Edmonds Chairman of Agriterra Ltd said, 'These acquisitions are part of our strategy of building an agricultural orientated company focussed in central and southern Africa. DECA is an established and profitable business, focussed on maize trading and processing and I believe the endorsement from the World Food Programme, one of DECA's largest customers, is testament to the quality and scale of the achievements made by DECA's management over the four years since its incorporation. Agriterra is now in the position to use and replicate this experience to other locations, as with Compagri. The acquisition of Mozbife also dovetails the grain production operations of DECA and Compagri, as the beef herds that they currently manage can, at least in part, be fed by the bran/chop by-product produced by DECA and Compagri. By creating synergies between Agriterra's stable of investments we hope to organically generate further growth for the Company and in turn, unlock shareholder value.'

Under the terms of the acquisition, 200,000,000 new Ordinary Shares ('Consideration Shares') have today been issued to Central African Mining & Exploration Company plc. In addition and as announced on 30 January 2009 the Company has today completed a placing of 78,688,866 new Ordinary Shares at a price of 3 pence per new Ordinary Share ('Placing Shares'), raising £2,360,666 before expenses. The Consideration Shares and the Placing Shares will begin trading on AIM today. 

Following the admission of the Placing Shares and Consideration Shares to trading on AIM, and the readmission of the Company's existing ordinary shares to trading on AIM the Company's total issued ordinary share capital comprises 473,821,554 shares.  

** ENDS **

For further information please visit www.agritterra-ltd.com or contact:

Phil Edmonds	Agriterra Ltd	Tel: [phone]
Jonathan Wright	Seymour Pierce Ltd	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Susie Callear	St Brides Media & Finance Ltd	Tel: [phone]

 

END

 

 

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