The Obtala Limited group has increased its stake in subsidiary Montara Continental Limited from 75% to 100%, according to the Guernsey-based agroforestry group.
The takeover of the wholly-owned subsidiary by the Obtala group resulted from the purchase of the 25% stake held by Africa Resource Investment Limited against payment of US$5.0 million to be fully invested in a group debt issue.
Montara Continental Limited controls 100% of Argento Continental Corporation, which owns forest concessions in Mozambique covering an area of 312,465 hectares, namely in the province of Manica.
The group, which has abandoned the retail and mining business to focus on the sustainable use of forest resources in Mozambique and Gabon, where it owns 96,851 hectares and agriculture in Tanzania, announced it has sold the latter business for US$2.5 million.
This sale involved subsidiaries Montara Continental Limited and Montara Limited which sold all of their holdings in Magole Agriculture Limited, Magole Land Limited, Milama Processing Company Limited and Wami Agriculture Company Limited to Envision Consulting (T) Limited, the Obtala group partner in Tanzania.
The group also said in the statement that the Volantis Fund, managed by the Lombard Odier Asset Management group, invested 2.0 million pounds in ordinary shares, and now holds 12.9% of the group’s share capital and investing US$5.0 million in debt issuance.