28th Mar 2014 13:26
LONDON (Alliance News) - Africa Oilfield Logistics Ltd Friday announced that it has entered into a framework and option agreement to restructure Ardan Risk & Support Services and acquire Ardan Logistics Kenya Ltd.
The investment company, focused on logistics and support for the commodities industry in sub-Saharan Africa, said Ardan Risk & Support Services is undertaking a corporate and contractual restructuring programme to rationalise operational management and implementation, planning and reporting, which is being overseen by Africa Oilfield.
The company also said it has been granted a 3-year conditional call option which provides the right, but not the obligation, for it to acquire 100% of Ardan Logistics Kenya Ltd, a separate and new shell company from which the restructured business of Ardan will be operated.
In August 2013, Africa Oilfield acquired a 49% interest in Ardan Risk & Support and agreed to provide funding to the company as it developed operations in East Africa.
The company, which did not provide details regarding the financial obligations related to the new Ardan deal, said that completion of the deal was subject to certain conditions and said it does not intend to exercise the option unless and until the corporate and contractual restructuring has been completed to its satisfaction.
Africa Oilfield shares were down 5.6% to 8.50 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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