Description of business:
Africa Oilfield Logistics Limited (the "Company") is a newly incorporated company that has been formed, and whose investing policy is, to acquire and/or invest in one or more businesses which focus on the logistics support industry in respect of oil and gas exploration and other development projects in sub-Saharan Africa.
The Company's investment objective is to provide shareholders with an attractive return on their investment predominantly through capital appreciation generated by the growth of any acquired assets and/or businesses. The Company proposes to adopt the following investing policy:
- To acquire or invest in logistics focussed businesses in respect of oil and gas exploration and other development projects in sub-Saharan Africa, although the Company will consider complementary mining businesses, assets and/or projects which focus on other materials, which in the opinion of the board offer better value to shareholders;
- To focus on the logistics support industry in respect of oil and gas exploration and other development projects located in sub-Saharan Africa which the board considers to be businesses, assets and/or projects suitable for an investment by the Company;
- To be an active investor and seek to add substantial value, both operationally and strategically, to the business and/or assets acquired or in which investments are made. The Company does not currently anticipate making minority investments but intends to focus on owning the whole of or majority interests in a small number of businesses, assets and/or projects.
With reference to the potential acquisitions of logistics focussed businesses and/or projects, the directors will, in particular, seek businesses with the following criteria:
- They have the potential for rapid sustainable growth;
- They have scope for utilising the directors' logistical experience and network of contacts for the benefit of shareholders; and
- They already possess a proven business model which is expected to provide attractive returns on capital.
The Directors have many years' experience working with and for companies operating in sub-Saharan Africa. They will use their extensive business contacts and knowledge to source the most attractive transactions and assess potential targets for acquisition. Details of the experience of Philippe Edmonds, Andrew Groves, Andrew Burns, Jonathan Wright and Ian Mann will be set out in the admission document and it is anticipated that initial due diligence of any possible acquisition target will be carried out by the Directors who will seek specialist advice as they deem necessary.
The Company has not set any duration on making or holding any investment and is not limited in time. There is no time limit for the Company to return funds to Shareholders and the Directors do not anticipate returning funds to Shareholders in the short to medium term. However, the Directors expect to make one or more acquisitions and/or undertake a reverse takeover transaction within 12 months of Admission.
Although the Directors are already appraising and evaluating potential assets for acquisition or investment, no agreements have as yet been entered into. In particular, the Directors have held initial discussions with one potential acquisition target but have not received a significant amount of information on it.
Africa Oilfield Logistics Limited