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KleenAir Systems International

  • BY: Andrew Hore |
  • POSTED: 03/11/2009 |

Shell company KleenAir Systems International has entered into a call option to acquire 74% of the proposed briquetting production business Argosec.

KleenAir is buying the 74% stake from New Zealand-based GlobalTech Marketing Ltd. A refundable deposit of £25,000 is payable. The other 26% of Argosec will be owned by a Black Empowerment Entity.

South Africa-based Argosec can turn ultra fine coal waste into briquette products, thereby generating additional revenues from the mining of coal. This reduces coal waste and should eliminate the need for tailing dams. No additional heat is required in the process.

KleenAir does not have to exercise the option and it intends to wait for GlobalTech to secure long-term financing. The call option ends on 31 December 2010.

The consideration for the 74% stake is 74% of Argosec’s adjusted post-taxation earnings at the end of the initial three years after full time commercial production of coal briquettes commences. The consideration is payable annually.

At 135p a share, KleenAir is valued at £0.38m.

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