PME Africa signals delay to portfolio sales

PMEA : PME Africa signals delay to portfolio sales

PME Africa has reported an unchanged NAV for the half year to 30 June 2014 of $046.

As shareholders rejected its proposal to become a rail transport company, PME Africa is focused on managing its remaining assets and finding buyers for them.

The property they own in Dar es Salaam in Tanzania cannot be sold at the moment as one of the tenants, Dovetel, is not paying rent and Dovetel’s owners have registered a caveat on the building. PME Africa is trying to evict Dovetel and have the caveat removed – this process has to go through the Tanzanian courts. Once they have full control of the property it will be sold and they have appointed a local agent to handle the transaction.

They say the rail business, Sheltam, “continued to perform profitably”. However the Board believe “the value of the investments will be maximised for shareholders only after Sheltam’s development plans have been fully established and implemented and hence the Board is not proactively seeking a buyer for these assets at the present time”.