REG - Cambria Africa PLC - Investment update

Cambria AfricaAnnouncement

27/10/2022 12:30

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RNS Number : 3721E  Cambria Africa PLC  27 October 2022

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

Cambria Africa Plc

("Cambria" or the "Company")

Investment Update

 

Cambria Africa plc (AIM:CMB) ("Cambria" or the "Company") further to Interim
Results for the 6 months ended 28 February 2022 and the end of the Company's
2022 financial year to 31 August 2022, is pleased to provide an investment
 update.

Cambria continues its efforts to maximize the realizable value of its NAV at
the holding level. The Company has conditionally agreed to sell its 78.2%
shareholding in A.F. Philips (Pvt) Ltd. (AFP) for a sum of US $1.74 million in
cash.  This amount equivalent to the  book value of its shareholding in AFP
at 31 August 2022 and at that  level of in each of the Company's published
results for the year ended 31 August 2021 and six months ended 28 February
2022. The Company made its initial investment in August 2018, and through the
holding, has an effective 9.74% interest in a property development and bricks
manufacturing business The sale is subject to conditions precedent which the
Company has reasonable cause to believe will be met and that the full purchase
price will be realized at the holding level. The Company will provide a
further update once the sale has completed.

The Ministry of Finance of Zimbabwe has released US $75,642 in part settlement
of US $957,642 of legacy debt/blocked funds and deposited with the Reserve
Bank of Zimbabwe. The Company expects at least $100,000 with respect to US
$416,396.22 of legacy debt registered by Gardoserve, a group company.  The
Legacy Debt total of US $1.39 million was deposited with the Reserve Bank of
Zimbabwe in 2019 at parity to the US Dollar Its value in Cambria's NAV on 31
August 2022  at the official Exchange Rate of 546.8254 was the equivalent of
US $2,545.67. Therefore, the vast majority of any recovery will impact the
Company's NAV and profitability positively. In the view of the board these
repayments bode well  for the possibility of recovering the full value of the
Company's Legacy Debt/Blocked Funds.

Old Mutual shares remain suspended on the Zimbabwe Stock Exchange (ZSE) as
well as their fungibility, which prevents the Company from repatriating these
shares to the Johannesburg Stock Exchange (JSE) where they were purchased and
transfer to the ZSE before fungibility and trading was halted.  The Company
and other holders of Old Mutual shares in Zimbabwe have not been privy to
developments in negotiations between the directors of Old Mutual Zimbabwe and
Government of Zimbabwe.  The US dollar value of the Company's 204,047 shares
has fallen to US $113,000 based on the JSE closing price on 21 October 2022
compared to the value of $163,342 on the JSE on 27 May 2022 when the
Interim Results for the six months ending 28 February 2022 were announced.
Old Mutual's inability to protect the rights of its shareholders in Zimbabwe
to trade their shares on a recognized Exchange has significantly prejudiced
Cambria's investment in Old Mutual shares.

 

 

 Contacts
 Cambria Africa Plc        www.cambriaafrica.com (http://www.cambriaafrica.com)
 Samir Shasha              +44 (0)20 3287 8814

 WH Ireland Limited
 James Joyce / Ben Good    +44 (0) 20 7220 1666

 

 

 

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