Update on Mozambique Asset Disposal
PACSCo Limited has announced a further amendment to the sale agreement for its Mozambique agricultural assets to Chepstow Investments Limited, extending the deadline for the Bank of Mozambique's acceptance of debt assignments to September 30, 2026, with an expectation of receipt in July 2026. This amendment constitutes a related party transaction due to Chepstow Investments' substantial shareholder status and board representation, but independent directors, after consulting with the nominated adviser, deem the terms fair and reasonable for shareholders.
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Further to the Company's previous announcements regarding the agreed disposal of its Mozambique agricultural assets (the "Disposal") to Chepstow Investments Limited ("CIL") pursuant to the agreement entered into on 10 March 2025 (as subsequently amended, the "SPA"), PACSCo announces that the Bank of Mozambique's ("BOM") acceptance of the notification of the assignment to CIL of the debt funding previously provided by the Company to the local operating entities in Mozambique, which, as previously announced, is being sought as a condition subsequent, and was expected to be achieved by 30 June 2026, remains outstanding. Accordingly, a further amendment has been agreed to the SPA to accommodate this delay (the "3rd Amendment").
Pursuant to the 3rd Amendment, the Company and CIL have agreed that obtaining the BOM's acceptance of the notification of the debt assignments (as a condition subsequent to initial completion) shall be achieved no later than 30 September 2026 (or such later date as may be agreed in writing between the parties), with the current working assumption being that it will be received in July 2026.
Related Party Transaction
Entering into the 3rd Amendment constitutes a related party transaction under Rule 13 of AIM Rules given that CIL is a substantial shareholder of the Company and it is represented on the Board of PACSCo by Hamish Rudland and Gary Smith. In this context, Caroline Havers, Neil Clayton and Sergio Zandamela (being the Directors on the Board who are considered to be independent of CIL) consider, having consulted with the Company's nominated adviser, Strand Hanson Limited, that the terms of the 3rd Amendment are fair and reasonable insofar as its shareholders are concerned.
Further updates will be provided as soon as possible.
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