16th Jul 2013 11:31
Masawara Plc
16 July 2013
Masawara PLC
("Masawara" or the "Company")
Intended disposal of investment
Masawara PLC (AIM:MASA), the AIM Listed investment company, is pleased to announce that it has conditionally agreed to sell its 51% stake in Masawara Energy Mauritius Limited ("MEM") to Woble Investments (Private) Limited, a 100% indigenous Zimbabwean entity ("the Transaction").
The total consideration payable by Woble Investments (Private) Limited will be US$24.888 million in cash conditional upon, amongst other things:
·; the consent and approval for the Transaction by the Minister of Youth Development, Indigenisation and Empowerment in Zimbabwe (in respect of the provisions of the Indigenisation and Economic Empowerment Act); and
·; the consent and approval of the Reserve Bank of Zimbabwe in respect of the purchase by a Zimbabwean entity of equity in a Mauritius registered company.
Masawara's share of MEM's assets per the last audited financial statements was US$23.4 million and Masawara's share of MEM's loss for the year ended 31 December 2012 was US$2.3 million. Pending completion of the Transaction, the business and activities of MEM and its direct and indirect subsidiaries will continue to operate in the usual course. A further announcement will be made upon the fulfilment of the various conditions precedent and the resultant conclusion of the Transaction. Upon completion, the proceeds of the sale will be applied in line with Masawara's investment strategy.
About Masawara
Masawara is a proactive investment company focussed on identifying growth opportunities that deliver cash returns both in Zimbabwe and the southern African region. The Company continues to appraise high quality new investment opportunities in Zimbabwe to add to the investment portfolio, and is intent on unlocking intrinsic value from the existing investment portfolio.
Contact details
Masawara plc
Oliver Lutz/Pride Masamba +263 4 751805
Cenkos Securities plc (Nominated adviser and broker)
Nicholas Wells/Max Hartley +44 20 7397 8900
Related Shares:
Masawara