Disposal

RNS Number : 6167K

Obtala Limited

23 September 2016

 

23 September 2016

Obtala Limited

("Obtala", the "Group" or the "Company")

(AIM: OBT)

Disposal of African Home Stores Retail Outlets

Obtala Limited, the African focused agricultural and forestry company, is pleased to announce that it has, through its wholly owned subsidiary African Home Stores Ltd. ("AHS"), finalized an agreement to dispose of its 72.69 per cent. owned chain of Lifes' Comfort Solutions ("LCS") retail outlets in Lesotho, for a cash consideration of $100 (one hundred US Dollars) to Rystabelz PTY Ltd with completion expected within 90 days, conditional upon all minority shareholders in LCS having had an opportunity to exercise their pre-emptive rights under the LCS articles of association or otherwise agreeing to the sale.

In the Group's year-ended 31 December 2015, the Retail division (including LCS as the division's only trading entity) made losses before tax of approximately £0.75 million on turnover of c.£3.125 million and as at that date had net liabilities of c. £0.134 million.  Deferred consideration of US$ 225,000 on the original October 2014 purchase, as amended, remains payable in monthly instalments by AHS with final payment due in June 2017.

Miles Pelham, Chairman of Obtala commented "the disposal of LCS marks the last divestiture of non-core ventures, leaving the Company solely focused upon its two remaining divisions - Tanzanian Agriculture and Mozambican Forestry.  Management attention and energies can now swing fully to expanding production capacity within these business lines, which is progressing well, whilst avoiding continuing losses from Retail operations.  

I wish Rystabelz good fortune in their activities in Lesotho and hope they build LCS into a prosperous retail network that can help enrich local communities as well as its shareholders."

The Group's results for the six months ended 30 June 2016 will be announced on 30 September.

Obtala Limited Miles Pelham - Chairman Paul Dolan - CEO www.obtala.com	[phone]
ZAI Corporate Finance Limited (Nomad)                 Peter Trevelyan-Clark/John Treacy/Jamie Spotswood	[phone]
Brandon Hill Capital  (Broker)      Jonathan Evans	[phone]

 

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