30th Oct 2013 11:20
LONDON (Alliance News) - AIM-listed Paragon Resources PLC Wednesday said it has completed a deal to take a 40% stake in African agricultural business Greenstar Resources Ltd, and will pay GBP103,377 in cash and shares for the stake, while one of Greenstar's owners will become its new chief executive.
Paragon intends to further increase its stake in Greenstar in the future. It will pay GBP20,000 in cash and the rest in 41.7 million Paragon shares to Greenstar's current owners.
One of those owners, Andrew Beveridge, will now become chief executive of Paragon Resources, with the task of building its portfolio of African agricultural operations.
"I am confident that the projects we are currently looking at with Andrew and Greenstar could form the basis of a significantly valuable operation," Paragon Chairman Simon Hunt said in a statement. "To achieve success in this sector, it is crucial to have close relationships with both agricultural operators and experts. This acquisition brings both and will allow Paragon to move forward quickly."
Paragon Resources shares were up 43.4% at 0.294 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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