6th Nov 2013 09:20
LONDON (Alliance News) - Craven House Capital PLC Wednesday said it has bought a 49% stake in three South African agricultural businesses for CAD1.96 million in shares from EmVest Asset Management.
The companies are involved in the production, processing and distribution of food in South Africa. The first business is a vegetable and cattle farm, the second dehydrates vegatables for products like soup, and the third is a fresh fruit and vegetable marketing business.
"The assets we have acquired an interest in have benefitted from considerable investment from EmVest in recent years," Craven House acting Chairman Mark Pajak said in a statement.
"Whilst the businesses have been constrained over the past year and have been running below capacity, we believe that with the introduction of additional working capital they can quickly be returned to profitability," he added.
Craven House will issue EmVest with 94.3 million new shares at 1.25 pence each as payment for the stake.
Craven's shares were up 28.6% at 0.36 pence early Wednesday, one of the top gainers on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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