Sale of Investee Company

RNS Number : 0971K

Cambria Africa PLC

25 July 2013

 



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

Sale of Investee Company

·        Cambria has executed agreements regarding the sale of Blueberry International Services Ltd (Blueberry), which indirectly holds 60% of the shares in Celsys Limited (Celsys), to an investor group*

·        The sale excludes the Cambria owned 'Southerton properties' where Celsys operates

·      This transition marks a further focusing of Cambria on its Payserv and Millchem investments, and their regional expansion

Cambria (AIM:CMB) is pleased to announce it has executed agreements with an investor group led by Mr Lovemore Chihota regarding the sale for of its entire interest in Blueberry, which indirectly holds 60% of Celsys for US$ 1.  The sale excludes the Cambria owned 'Southerton properties' where Celsys operates.

With this transaction, which sheds a loss making investment for the Company, Cambria is pleased to transfer the responsibility of the necessary capital investment required to take Celsys to the next level to a committed new owner.

Cambria's Chief Executive, Edzo Wisman, commented: "While Celsys has achieved improvements over the past 24 months, the rapid rate of progress in the field of printing will continue to require significant additional capital expenditures to steer Celsys to the next level in its turnaround. The Board believes this required capital would be better deployed by Cambria expanding Millchem and Payserv into the region.  Once the Board appreciated Mr Chihota's investor group's vision for Celsys, the Board believed a win-win situation could be achieved, through which both Celsys as well as Cambria would be best served."

Added Ian Perkins, Cambria's Chair: "As time passed, it became more and more clear to Cambria's Board that to keep Celsys growing while moving it into profitability, an increasingly large investment was needed, which would take time to bear fruit.  The investor group led by Mr Chihota is in our view much better placed to execute this strategy.  Given Cambria's vision to focus on investments that can be easily expanded into the region, generating rapid growth rates, and Mr Chihota's enthusiasm for Celsys, this was simply the right decision to take."

During the 2012 financial year the Blueberry group had revenues of US$ 1.8 million and a net loss of US$ 2.7 million, impacted by a US$ 1.3 write off of certain loan assets.  The net loss at Cambria Group level was significantly impacted by an additional US$ 6.8 million in write offs by Cambria of its investments in the Blueberry Group. 

Certain conditions precedent have to be met before the sale of Blueberry can be completed and the Company can therefore not be certain the transaction will complete.  It will inform shareholders as developments occur.

With the takeover of Celsys by the investment group, Cambria is no longer seeking a secondary listing on the Zimbabwe Stock Exchange.

* Agreements have been executed with Winwood Properties Limited, a company vehicle used by the investor group for this purpose

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	+ 1 (0) 416 358 1910
WH Ireland Limited	www.wh-ireland.co.uk
James Joyce / Nick Field	[phone]

 

END

 

 

MSCNKQDQCBKDKOB