Africa Oilfield Logistics has announced that it has decided to exercise the call option granted to it pursuant to the framework and option agreement announced on 28 March 2014, to acquire the entire issued share capital of Ardan Logistics Kenya Limited (ALK), in a reverse take-over that could see its name changed to Atlas Development & Support Services Limited
“East Africa, our area of strategic focus, is rapidly becoming an economic centre and a hub of continental growth, fuelled to a large extent by the rapid development of resource assets in the region,” said Carl Esprey, Africa Oilfield CEO.
“The acquisition of the entirety of Ardan’s operations is the next step in the company’s objective of becoming the leading professional, efficient and profitable turn-key development and support services group in sub-Saharan Africa. Under the new branding of “Atlas Development & Support Services”, we intend to take a joined-up approach to the expansion and delivery of our industry-leading services, extending the current contract base, new business pipeline and geographic reach of operations and further enhancing the revenue generation of the group.
“Through our initial investment into Ardan in August 2013 we provided shareholders with exposure to this sector through Ardan’s high quality support services offering, targeted towards blue chip oil and gas and mining exploration, development and production companies.
“Building on a solid and cash generative business platform, we have helped to oversee a comprehensive restructuring and rationalisation programme undertaken by Ardan, which has delivered tangible material benefits. Ardan’s unaudited revenues for the six month period ended 30 June 2014 increased significantly to USD 20.6m compared with the previous full year result to 31 December 2013 of USD 22.5m. This was a tremendous achievement and demonstrates the considerable upside that can be achieved through the professionalised and rationalised business structure.”
Exercise of the call option constitutes a reverse takeover under the AIM Rules and is therefore conditional, inter alia, on shareholder approval which will be sought at a general meeting to be held at 12.00 p.m. on 22 October 2014 at Richmond House, St Julian’s Avenue, St Peter Port, Guernsey GY1 1GZ.
At the general meeting, shareholder approval will also be sought to change the company’s name to “Atlas Development & Support Services Limited” and to make certain amendments to the company’s articles of incorporation.