As announced on
Under the terms of the Agreement, the purchase price for the Purchased Assets shall consist of (i) a cash payment of
The Company has been provided with a copy of a non-binding term sheet between KKM, CDC and the Company’s senior lenders providing for a restructuring of their debt.
The Agreement is subject to the Company initiating a proceeding pursuant to Division I, Part III of the Bankruptcy and Insolvency Act (
Commenting on the Purchase Agreement, Mr. Walé
Larry Seruma, Executive Chairman of
"Through this transaction, PHC will become part of a nimbler and more efficient company and the reduction in administrative and corporate costs will allow more money to be invested on PHC’s operations in the
The independent directors of the Company unanimously approved the execution of the Purchase Agreement and the filing of the NOI. Completion of the transactions is subject to a number of conditions, including court approval of the BIA Proceedings. The transaction is expected to close on or before
For further information please contact:
Larry Seruma Executive Chairman, larry.seruma@feronia.com | Director of Communications and Corporate Development, 44 (0)7554 521421 paul.dulieu@feronia.com |
About
Feronia is an agribusiness operating in theDemocratic Republic of the Congo (DRC).- At the heart of
Feronia lies a long established palm oil business, Plantations et Huileries du Congo (PHC), which has three remotely located plantations; Lokutu, Yaligimba and Boteka. - When
Feronia acquired its palm oil business from Unilever in 2009, it had suffered from years of underinvestment and considerable disruption caused by conflict in the DRC. Our initial focus has been on rebuilding the business and resuming production to secure PHC’s future and the livelihoods of the thousands of people it employs. - Feronia’s plantations produce crude palm oil (CPO) and palm kernel oil (PKO). CPO is part of the staple and traditional diet of the Congolese and, with our products sold locally in the DRC, we are well placed to help decrease reliance on imports and increase food security and quality.
Feronia prides itself on being the guardian of its 109 year-old palm oil business and its employees, communities, and environment. We have a long term commitment to improve the living and working environment of our employees and their communities and are committed to sustainable agriculture, environmental protection and community inclusion.Feronia has in place Environmental and Social Management which is focused on implementing environmental and social best practice and improving social infrastructure.Feronia is working towards certification by the Roundtable for Sustainable Palm Oil (RSPO) and is implementingIFC/World Bank standards for environmental and social sustainability. Our oil palm replanting programme is brownfield in nature – replacing old palms with new – and it has no reliance on deforestation.- For more information please see www.feronia.com
Cautionary Notes
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “anticipates”, “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” and “will”. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the “Loi Portant Principes Fondamentaux Relatifs A L’Agriculture”, termination or non-renewal of concession rights or expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, lack of infrastructure in the DRC, high inflation rates, limited availability of debt financing in the DRC, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), the Company’s reliance on two major customers, lower productivity at the Company’s plantations, risks related to the agricultural industry (including adverse weather conditions, shifting weather patterns, and crop failure due to infestations), a shift in commodity trends and demands, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to
Neither the
Source:
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