PME African Infrastructure has published results for the year ended 31 December 2014 which is quite a while ago now. For what it’s worth the net asset value fell from 46 cents to 24 cents over 2014. since the year end the company has sold its largest asset, Sheltam Holdings, for $11.5m. The deal completed on 5 May 2015. The Company’s remaining assets are three locomotives and the benefit of the remaining 23 years of a 30 year lease of commercial premises in Dar-es-Salaam, Tanzania. The cash consideration from the Transaction has been used to determine the fair value of the Company’s investments in rail assets at the year end. They cold get another $4.25m from selling the locomotives under option agreements with the buyers of Sheltam.
The Dar-es-Salaam property, which is managed by a local managing agent, is fully let and the investment continues to trade profitably. In March 2013 the current owners of Dovetel (T) Limited, PME Africa’s former telecommunication interest in Tanzania, registered a caveat over the property requiring their consent for any sale of the property. Dovetel partially occupies the Dar-es-Salaam property as a tenant but is in arrears for rent. PME continues to pursue its options regarding the eviction of Dovetel for non-payment of the rent. In addition, PME continues to pursue a process through the courts to wind up Dovetel, although this will only be heard once an appeal against Dovetel being placed into administration has been heard. PME’s legal advisers have attended a number of court status hearings in relation to the appeal, but little progress has been made due to changes in court personnel, scheduling of hearing dates and the difficulty in getting all parties to meet on the appointed date.
PME’s legal representatives are reviewing the files from the latest status reports and will then consider the options available to the Company. The options will be discussed with the Directors in the near future. There is a further status hearing scheduled for June 2015. It is anticipated that it will be several months before any clear path forward in the court process is identified. In addition to reviewing the legal status, the Directors continue to monitor the operational performance and any capital expenditure requirements needed to maintain the building in good condition. A sale of the Dar-es-Salaam property is likely to occur only when the current legal process with Dovetel is resolved.
PMEA : PME Africa disposal completed