CES Zimbabwe and FMNA

RNS Number : 7095K

Cambria Africa PLC

24 August 2012

 



Cambria Africa plc

("Cambria" or the "Company")

CES Zimbabwe and FMNA

Cambria (AIM:CMB) announces that it has executed agreements related to the conditional sale of its shares in Diospyros Investments (Pvt) Ltd, a regional IT services company trading as CES Zimbabwe (CES), to Complete Enterprise Solutions Mauritius (CES Mauritius) (the "Sale"). 

Cambria will receive US$190,000 from CES Mauritius for the Sale, completion of which is conditional on certain regulatory approvals being obtained.  Cambria had to date directly invested approximately US$155,000 into CES, which was launched January 2011, and over the six month period ending February 2012 CES generated 2.7% of Cambria's gross profit.

The provision of IT services through CES was considered a core business for Cambria.  However, CES is currently jointly managed by Cambria and CES Mauritius through a franchise agreement between CES Mauritius and Cambria sharing investment, risk and profits in CES.  This structure proved unsustainable. 

CES Mauritius is a regional IT services company and itself a joint venture between Lonrho plc and other individual shareholders.

Cambria may, at a later stage, reconsider entering the IT services market, which it continues to consider attractive.  However, at this point, the Company will focus on developing and strengthening its four remaining businesses:  PayServ; Celsys; Millchem; and the Leopard Rock Hotel.

Cambria also announces it has signed a Memorandum of Understanding (MOU) with its joint venture partner ForgetMeNot Software Limited (FMNS) regarding the sale of Cambria's shares in ForgetMeNot Africa (BVI) Limited (FMNA) to FMNS for US$ 250,000.  The sale price is to be paid by FMNS upon meeting certain milestones or, at latest, twelve months from completion.  Completion is anticipated within the forthcoming month.

The Company had previously indicated that FMNA was a non-core investment.  Moreover, earlier this year Cambria wrote off all monies invested in FMNA.   Upon completion of the transaction, the US$250,000 in proceeds will be accounted for by the Company as a contingent asset.

The Company cannot be certain the above transactions will complete.  It will inform shareholders as developments occur.

About Cambria Africa plc

Cambria Africa plc, quoted on the AIM market of the London Stock Exchange, is a long term, active investment company, building a portfolio of investments primarily in Zimbabwe.

Contacts

Cambria Africa plc                     www.cambriaafrica.com
Ian Perkins                            [phone]
Edzo Wisman                            [phone]

WH Ireland Limited                     www.wh-ireland.co.uk
James Joyce / Nick Field               [phone]

 

END

 

 

DISEAFPDALKAEAF