AAAP Anglo African Agriculture Plc

 
TIDMAAAP 
 
The information contained within this announcement is deemed to constitute 
inside information pursuant to the EU (Withdrawal) Act and amended pursuant to 
Market Abuse (Amended) (EU Exit) Regulations 2019. Upon the publication of this 
announcement, this inside information is now considered to be in the public 
domain. 
 
For immediate release 
 
29 April 2021 
 
                         Anglo African Agriculture plc 
 
                           ("AAA" or the "Company") 
 
 
                               Corporate Update 
 
The Company is pleased to provide a progress update on the proposed acquisition 
of the Comarco group of companies (the "Comarco Group"). The Comarco Group is 
based in Mombasa, Kenya and is engaged in port and marine logistics activities 
in East Africa. 
 
Comarco business update 
 
Despite the uncertainty created by Covid-related lockdowns and business 
interruptions, Comarco continues to operate in line with management budgets. 
 
The Comarco management team has focused on new business and Comarco has secured 
contracts in the coastal waters in and around Kenya, Tanzania, Mozambique and 
Somalia as well as its first contract on Lake Tanganyika. 
 
In the Comarco Port Division delivery of iron ore into the yard for export has 
recommenced in early April 2021. Negotiations to secure a substantial coal 
import contract are at an advanced stage. This will substantially boost 
throughput volumes and the overall performance of the port. 
 
One of recently executed contracts involve Comarco being contracted by the 
Kenya Ports Authority ("KPA") to carry assorted equipment for cargo handling 
and navigation from Mombasa to Lamu port that is being operationalised. Comarco 
provided a 106-metre shoal-draft flat-bottomed flat top barge C231 to move the 
equipment, and it was towed by the tug MV Comarco Swift. Comarco will further 
transfer a Rubber-Tyred Gantry Crane to Lamu Port during May 2021. The current 
contract with KPA follows a successful contract in September 2021 to transfer 
four Rubber Tyred Gantry (RTG) cranes from one section of Mombasa Port to 
another. 
 
In the meantime Comarco's on-going work with the Fujita Corporation in support 
of the Southern Bypass Road Construction project as well as the 
soon-to-commence Kilindini harbour bridge construction project, will benefit 
both the Marine and Port divisions. 
 
Update on LNG project in Mozambique 
 
On Monday 26 April 2021, Total Group announced a "force majeure" on its 
Mozambique LNG project and Comarco management is monitoring the developments 
closely as part of its future growth opportunities would have been greatly 
assisted by providing its port and marine logistics services to the LNG project 
contractors. Thus far there has not been any material impact on any existing 
contracts with LNG contractors, however this development is expected to lead 
into delays in the resumption of works at the project and thus impact the 
future contract pipeline opportunities of Comarco. 
 
Transaction funding update 
 
The Company is working with Comarco in order to secure the necessary 
arrangements to provide sufficient working and expansion capital to conclude 
the RTO and put the combined group on a growth path after Admission. A revised 
term sheet with a large regional commercial bank is in advanced stages of 
finalisation that could provide Comarco with access to additional growth 
funding once the reverse takeover ("RTO") has been completed. 
 
Discussions and due diligences with equity and debt funders are progressing. 
Further announcements will be made once binding agreements are executed. 
 
Extension of sale agreements 
 
As a result of the ongoing discussions, the Company and shareholders of Comarco 
group of companies have agreed to extend the existing sale and purchase 
agreements ("SPAs") until 30 September 2021 to allow for sufficient time to 
finalise the fund raising process and complete the RTO. Documentation to 
formalise this extension is currently being finalised. 
 
For further information, please visit www.aaaplc.com or www.comarcogroup.com 
contact the following: 
 
 
Anglo African Agriculture plc 
 
David Lenigas, Non-Executive Chairman              +44 (0)20 7440 0640 
 
Rob Scott, Executive Director                      +27 (0)84 6006 001 
 
Comarco Group 
Simon Phillips (Chief Executive)                   +27 (0)82 6191 081 
Charlie Pettifer                                   +44 (0)77 8811 4411 
 
VSA Capital Limited (Financial Adviser and         +44 (0)20 3005 5000 
Corporate Broker) 
 
Andrew Raca, Maciek Szymanski (Corporate Finance) 
Andrew Monk (Corporate Broking) 
 
 
 
END 
 
 

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April 29, 2021 03:21 ET (07:21 GMT)

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