Anglo African Agriculture has received an offer from Prime Meridian Resources Corporation of Canada to buy the company's 49.9% interest in its Guar Bean production joint venture in South Africa.
The result of this deal concluding will see all debt within the Guar Bean JV company eliminated, PMR paying all ongoing costs and also the return of ZAR 1.4 million back to AAA on successful closing.
The offer is currently non-binding and it is anticipated that it will become binding within 30 days, subject to the necessary due diligence by PMR and formal sale agreements being signed within the 30 day period.
Chairman David Lenigas said: "Should this deal close, AAA will be able to direct the sale proceeds and the money currently being spent on the loss making Guar Bean JV directly in to growing our core business of manufacturing, import and distribution of herbs, spices and seasonings for the food manufacturing sector where we see significant upside."
At 9:19am: (LON:AAAP) Anglo African Agriculture Plc Ord 0.1p share price was +0.05p at 0.95p