Africa Oilfield has been granted a 3-year conditional call option which provides the right, but not the obligation, to acquire 100% of Ardan Logistics Kenya , a separate and new ‘shell’ company from which the restructured business of Ardan will be operated.<\/li>\n<\/ul>\nThe signing of the Agreement follows negotiations conducted with the principals of Ardan during the period of exclusivity granted to the Company in August 2013 at the time when the Company acquired a 49 per cent. interest, and agreed to provide funding to, Ardan.<\/p>\n
Together with Africa Oilfield management, the principals of Ardan have identified that the operation of the Ardan business requires and will benefit from restructuring so as to improve operational management and implementation, planning and reporting.<\/p>\n
Accordingly, the principals of Ardan have established ALK, a separate and new ‘shell’ company in Kenya within which it will implement a new divisionalised structure through which the Ardan business will be operated going forwards. As part of this process, management of Ardan will seek to novate certain existing contracts to ALK.<\/p>\n
Under the terms of the Agreement, an option has been granted to Africa Oilfields which provides the right, but not the obligation, to acquire 100% of the issued share capital of ALK. The Board do not intend to exercise the Option unless and until the corporate and contractual restructuring has been completed to its satisfaction.<\/p>\n
In addition to being subject to shareholder approval, completion of the Agreement will also be subject to the satisfaction of certain other conditions, including satisfaction of any requirements of relevant competition authorities.<\/p>\n
Recognizing that local competition authority procedures will need to be followed, in order to avoid any extended period of uncertainty in respect of completion, AOL intend to seek approvals at an early stage and, if possible, have them in place prior to exercise of the Option. In the event that the Option is not exercised, the board recognizes and acknowledges that appropriate accounting impairment may need to be made in respect of the Company’s 49% investment in Ardan, as required.<\/p>\n
Shareholders of the Company are advised that should the Option be exercised by Africa Oilfield, such exercise will likely constitute a reverse takeover for the purposes of rule 14 of the AIM Rules for Companies (“AIM Rules”). Accordingly, the Company expects to publish a re-admission document and to convene a general meeting to approve the reverse takeover immediately upon exercise of the option. Further information will be provided in this regard in due course and, in accordance with the AIM Rules, full details relating to the reverse takeover will be provided in the re-admission document.<\/p>\n
In the meantime, Africa Oilfield will continue to provide funding to Ardan to enable it to continue to develop its services to meet its clients’ specialist needs, in the fast moving African natural resource exploration and development sectors.<\/p>\n
\u201cThe signing of the Agreement marks another important step in the Company’s continuing development and towards cementing its original vision of developing into a leading provider of quality turn-key support services and logistics solutions to international oil, gas and mining companies operating on the African continent. Our work since completing our original investment has shown that the Ardan business requires the proposed restructuring to fully meet its potential,\u201d \u00a0said Chief Executive Officer of Africa Oilfield, Carl Esprey<\/p>\n
\u201cWe believe that a successfully restructured Ardan business has the potential to become the premier support services and logistics company in the East African region. We will keep shareholders regularly updated on progress and look forward to working with our committed team through this exciting phase, with a view to maximizing value for shareholders.\u201d<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Africa Oilfield Logistics, the investment company established to invest in the oil and gas logistics support industry in sub-Saharan Africa, has entered into a framework and option agreement pursuant to … Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":819,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[63,76,169,181,671],"class_list":["post-818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-africa","tag-africa-oilfield","tag-aol","tag-ardan-risk-support-services","tag-east-africa","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/03\/ardan.jpg?fit=341%2C224&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-dc","jetpack-related-posts":[{"id":1950,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oilfield-logistics-completes-acquisition-of-ardan-logistics-kenya-limited\/","url_meta":{"origin":818,"position":0},"title":"Africa Oilfield Logistics completes acquisition of Ardan Logistics","author":"Samuel Kamau Mbote","date":"October 23, 2014","format":false,"excerpt":"AIM listed African focussed support services and logistics company Africa Oilfield Logistics Ltd has announced the acquisition of the entire issued share capital of Ardan Logistics Kenya Limited following shareholder approval being obtained in respect of all the resolutions proposed at the Company's general meeting held earlier today. According to\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/africa-oilfield-logistics.png?fit=462%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1837,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oilfield-logistics-ltd-seeks-to-fully-acquire-ardan-logistics-kenya-limited\/","url_meta":{"origin":818,"position":1},"title":"Africa Oilfield Logistics Ltd seeks to fully acquire Ardan Logistics Kenya Limited","author":"Samuel Kamau Mbote","date":"September 28, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Africa Oilfield Logistics Ltd has announced that the Board has decided to exercise the call option granted to it pursuant to the framework and option agreement announced on 28 March 2014 to acquire the entire issued share capital of Ardan Logistics Kenya Limited. Exercise of the Call Option\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/africa-oilfield-logistics.png?fit=462%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1770,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oilfield-logistics-limited-to-establish-logistics-hub-in-northern-kenya\/","url_meta":{"origin":818,"position":2},"title":"Africa Oilfield Logistics Limited to Establish Logistics Hub in Northern Kenya","author":"Samuel Kamau Mbote","date":"September 15, 2014","format":false,"excerpt":"African focussed support services and logistics company Africa Oilfield Logistics Ltd has announced that Ardan Risk & Support Services the Company's primary investment, has entered into a 15 year lease over a sizeable land plot in Northern Kenya, which will be used for warehousing, fuel distribution, cold storage and fleet\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/03\/ardan.jpg?fit=341%2C224&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2006,"url":"https:\/\/www.oilnewskenya.com\/index.php\/african-oilfield-logistics-limited-rebrands-to-atlas-development-support-services-limited\/","url_meta":{"origin":818,"position":3},"title":"African Oilfield Logistics Limited rebrands to Atlas Development & Support Services Limited","author":"Samuel Kamau Mbote","date":"November 6, 2014","format":false,"excerpt":"African focused support services and Logistics Company formerly known as Africa Oilfield Logistics Limited announces that it has completed its change of name to Atlas Development & Support Services Limited and effective 28th October. This follows the acquisition of the entire issued share capital of Ardan Logistics Kenya Limited by\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/atlas.png?fit=509%2C322&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1555,"url":"https:\/\/www.oilnewskenya.com\/index.php\/1555\/","url_meta":{"origin":818,"position":4},"title":"Africa oilfield logistics raises $12 million by share issuance","author":"Samuel Kamau Mbote","date":"August 4, 2014","format":false,"excerpt":"Africa Oilfield Logistics Ltd an African focused support services and logistics company has announced it has conditionally raised approximately US$12.0 million before expenses by way of the issue of 77,800,000 new ordinary shares in the Company at a price of 9.0 pence per share. The proceeds of the fundraising together\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1903,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oilfield-logistics-ltd-to-dual-list-in-the-nairobi-securities-exchange\/","url_meta":{"origin":818,"position":5},"title":"Africa Oilfield Logistics Ltd to dual list in the Nairobi Securities Exchange","author":"Samuel Kamau Mbote","date":"October 13, 2014","format":false,"excerpt":"African focussed support services and logistics company Africa Oilfield Logistics Ltd has announced its intention to dual list on the Growth Enterprise Market Segment ('GEMS') of the Nairobi Securities Exchange by way of an introduction and private placing of up to 10% of the Company's enlarged share capital, such private\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/africa-oilfield-logistics.png?fit=462%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=818"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/818\/revisions"}],"predecessor-version":[{"id":3335,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/818\/revisions\/3335"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/819"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}