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Monday 23 November, 2009

ESV Group Plc

Sale of Mozambique Jatropha P

RNS Number : 8754C
ESV Group Plc
23 November 2009
 



ESV GROUP Plc

("ESV" or "the Group")


Sale of Mozambique Jatropha Plantations for US$4m


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.


Masoud Alikhani, Chairman of ESV, commented:


"We are pleased to have concluded this Agreement with two of Europe's leading energy companies. Our initiative in entering the jatropha farming sector has proved a successful one and we are now handing over well-established plantations to a specialist jatropha biofuel producing organisation with the financial and technical capabilities to take the business forward and make an effective contribution to the reduction of carbon emissions in line with the European Biofuels Directive.


"We would like to thank the relevant authorities and people in Mozambique who have cooperated in founding and developing the plantations.


"The monies raised will be re-invested in our other activities, allowing us to expand them significantly. We are currently reviewing a number of opportunities in both farming, including,seed oils for biofuel, and logistics ". 



The Directors of ESV accept responsibility for this announcement


Notes to editors:


ESV is a broadly based investment company involved in agribusinesses including farming and logistics in the Ukraine and grain trading.


The Company holds a purchase and sale agreement with a 12,000 hectare farming business in the Poltava region of the Ukraine andit has a management agreement with Dnipro Cargo Ltd for port management operations at the Kherson Seaport, one of the principal transshipment centres on the Black Sea. Here it operates cargo and port facilities, principally for the export of grains. ESV is also developing a tank farm in the Netherlands in conjunction with strategic partners.


ESV Group has been quoted on PLUS since 21 August 2006 (symbol ESV).


www.esvgroup.com

 

23rd November 2009


This information is provided by RNS
The company news service from the London Stock Exchange
 
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