Africa Oilfield Logistics Ltd is making its first acquisition six weeks since joining Aim as a cash shell.
The shell is paying $4m in shares for a 49% stake in Ardan Risk & Support Services, which is an oilfields services and logistics business operating in Kenya, Ethiopia and Mauritius, and it has a period of 180 days of exclusivity to acquire the other 51%.
Ardan was formed in 2008 and revenues have consistently grown since then. It operates in the Rift Valley where Tullow Oil has made discoveries. Africa Oilfield Logistics will be providing additional funding.
Africa Oilfield Logistics, which was formed by former cricketer Phil Edmonds, raised £4.25m at 5p a share when it joined Aim on 25 June 2013. At 6.5p a share, Africa Oilfield Logistics is valued at £14.5m. That is prior to the issue of the 33m new shares, which are being issued at a notional share price of 8p. Michael Pelham of Ardan will own 9.19% of Africa Oilfield Logistics.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2013_46.pdf
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.