Closing of Acquisition & Distribution Agreements

RNS Number : 8999P

Cambria Africa PLC

26 August 2014

 



26 August 2014

Cambria Africa plc
("Cambria" or the "Company")

Closing of Malawi acquisition and New Distribution Agreements

Highlights

·     5,500,000 new ordinary shares of 0.01p each in the Company issued in connection with the
 acquisition of C&M expected to start trading on AIM on 29 August 2014

·     Integration of C&M with the Millchem business is underway and already realising synergies in
 purchasing, development and sourcing

·     Millchem also received key regional supply agreements for leading beverage products, including
 the Polyclar beer clarifier from Ashland Inc. (NYSE:ASH) edible oil purification product Tonsil from
 Clariant (SIX: CLN) and Celatom; beverage, sugar and edible oil filter aids from EP Minerals LLC

Cambria, the Southern Africa focused investment company, is pleased to announce that further to the announcement of 27 May 2014, regarding the acquisition of leading Malawi chemical distributor Chemicals & Marketing Company Limited ("C&M"), application has been made for the admission to trading on AIM of 5,500,000 new ordinary shares of 0.01p each in the Company (the "Consideration Shares") in connection with the acquisition of C&M.  All conditions precedent being therefore satisfied, legal completion of the acquisition of C&M has now taken place.  The Consideration Shares will rank pari passu in all respects with the Company's existing issued ordinary shares.  Admission of the Consideration Shares to trading on AIM ("Admission") is expected to occur on 29 August 2014.

Integration between C&M and Millchem is underway and making good progress. C&M's "SUPERGUARD" product is one example of the multiple synergy opportunities already being realised, as this line is now produced by one of Millchem's trusted Zimbabwe-based customers rather than imported from abroad. With C&M now also joining the Millchem purchasing pool, the landed cost for various commodity chemicals is dramatically improving; a development which is welcomed by its customers. Being part of Millchem also immediately delivers C&M with the benefit of accessto Millchem's growing list of leading suppliers.   

Cambria also announces further progress at Millchem, which, further to the announcement of 23 May 2014, has received additional key regional supply and distribution agreements, marking significant further progress for Millchem. Cambria is pleased to confirm that Millchem is now distributor for a number of leading products in the beverages industry.  Among others, it has become the distributor for:

·     Ashland Inc. (NYSE: ASH) in Zimbabwe, Zambia and Malawi for, among others, its well-known
 Polyclar range of Beer Clarification. Ashland is one of the world's leading specialty chemical
 companies, and a Fortune Global 500 company

·     Clariant AG (SIX: CLN) in Malawi for its Tonsil product range, for edible oil purification. Switzerland
 based Clariant AG also one of the world's leading specialty chemical companies.

·     EP Minerals LLC in Zambia and Malawi for its Celatom products, filter aids for Beverage, Sugar and
 Edible Oil producers. EP Minerals, formerly EaglePicher Minerals, is a specialty minerals producer
 headquartered in Reno, Nevada.

Following Admission, the Company's enlarged issued share capital and total number of ordinary shares with voting rights will comprise 104,655,162 ordinary shares, which may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Edzo Wisman, CEO of Cambria, commented:

"This integration between C&M and Millchem is a good example of how Cambria Africa is driving efficiency across its portfolio, and enhancing value for shareholders. It is encouraging to see the synergy benefits that are already being accrued by this development, and we are pleased to be working with such a number of high profile businesses across the region as a result."

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]
Peterhouse Corporate Finance Limited	www.pcorpfin.com
Charles Goodfellow / Duncan Vasey	[phone]
FTI Consulting	www.fticonsulting.com
Edward Westropp / Adam Cubbage	[phone]

 

END

 

 

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