Tag Archives: Atlas Development & Support Services

Atlas Development & Support Services lists on the Nairobi Securities Exchange

by

0


Nairobi-headquartered support services and logistics company Atlas Development & Support Services (ADSS or Atlas cross listed on the Growth Enterprise Market Segment (‘GEMS’) of the Nairobi Securities Exchange, having successfully raised KES 450 million (US$5 million) through a private placement to Kenyan investors.

According to Atlas CEO Carl Esprey the listing hopes to tap from the growing opportunity in the region as well as leverage on local content.

“The strong interest from Kenyan investors is recognition of the opportunity to create a world class development and support services provider in Eastern Africa. We have demonstrated robust financial performance, world class service delivery and regional scale to position Atlas as the best way to gain exposure to this opportunity,” says Esprey.

The funds raised in the placing will be used to provide additional capital for organic growth and acquisitions around Atlas’s support services offering in Kenya and the region.

The placing, which was offered solely in Kenya, was completed through the issue of 39,139,827 new ordinary shares at a price of KES 11.50 per share (being 8.13p, in line with the closing price of the Company’s shares on AIM on 20 November).

Andrew Wachira, Acting CEO, NSE says, “The cross listing of Atlas is another major step towards our goal of ensuring that companies that have substantial operations in Africa are accessible to both Kenyan and international investors. This cross listing is historic for our exchange and it is directly in line with Vision 2030, which envisions that the growth in Kenya’s natural resources industries will also help grow our financial institutions.”

“The cross listing further justifies Kenya’s stance that its financial market remains very attractive to both local and international investors. ” adds Mr Wachira.

Atlas recently commenced construction on a KES 180 million (US$2 million) planned investment to build a logistics hub in Lokichar, Turkana County. This will help companies and government operate more effectively across the Turkana basin.

Atlas has invested KES 1.4 billion (US$ 15 million) in Kenya over the last 12 months and plans to invest over KES 4.5 billion (US$ 50 million) in Kenya over the next five years.

Carl Esprey says, “We’re Kenyan-headquartered and our core operation was founded here in Nairobi. Today we’re proud to also call ourselves a Kenyan-listed company. The cross listing will provide further local support for Atlas and represents a natural alignment with our Kenyan stakeholders and customers.”

The shares have been offered today on the GEMS market – at a price of KES 11.50 (8.13p) per share – a slight discount on London.

Edward Burbidge, CEO says, “This cross listing is a very exciting transaction for both the Nairobi and London financial markets. Here in Kenya it will provide investors with a unique opportunity to gain exposure to this sector in Eastern Africa, through a company that has 100 per cent of its shareholder register tradable in both Nairobi and London.”

Burbidge Capital acted as placing agent and Nominated Advisor to the placing and cross listing.

Atlas provides international standard turn-key development and support service solutions to multiple sectors, including oil & gas, mining, geothermal, construction and infrastructure. It employs over 700 Kenyans in delivering engineering, infrastructural development projects and workforce accommodation solutions in Kenya, Tanzania, Djibouti, Mozambique and Ethiopia.

Atlas Development secures first contract in Mozambique

by

0

African focused support services and Logistics Company Atlas Development & Support Services Limited has announced that, in line with its expansion strategy for East Africa, it has been awarded its first support services contract in Mozambique.

The agreement, with an international oil company, underlines Atlas Development’s increasing penetration into the oil & gas support services market and its growing reputation with international blue-chip operators.

According to Atlas CEO Carl Esprey the multi-service agreement reflects the Company’s strategy of supporting early stage exploration activities with a view to securing and implementing long term development contracts.

“Atlas Development has its sights set on becoming the turnkey support services company of choice in East Africa, and today’s contract with another international oil company not only marks our transition in a new strategic jurisdiction, but also validates Atlas Development’s reputation as a quality and international standard operator,” says Esprey.

The contract also marks an entry point into a new country and complements the Company’s existing operational presence in Kenya, Ethiopia and Djibouti.  The Company is headquartered in Nairobi and has regional offices in the Turkana region of Kenya, Addis Ababa and Djibouti.

Esprey adds that this first contract in Mozambique could be the beacon for a new presence in the country.

“Mozambique, as with other countries in East Africa including Kenya, Ethiopia and Djibouti, holds a significant amount of potential for us.  We are therefore pleased to have secured this contract to support our client’s entry into Mozambique and believe that this initial agreement will pave the way for a long term strategic presence in the country.”

Mozambique is an important new territory for the Company as it is host to the development of multiple large scale oil & gas, mining and power projects, making it an ideal target for Atlas Development.

The company’s Board adds intends to further leverage its position as a market leader in the provision of turnkey support services and logistics solutions to additional operators within the burgeoning resource and power market in Mozambique.

This new contract comes even as the company prepares to dual list in the Nairobi Securities Exchange later in the month with Atlas saying discussions are in the final stages.

 

Africa Oilfield Logistics completes acquisition of Ardan Logistics Kenya Limited

by

0

AIM listed African focussed support services and logistics company Africa Oilfield Logistics Ltd has announced the acquisition of the entire issued share capital of Ardan Logistics Kenya Limited following shareholder approval being obtained in respect of all the resolutions proposed at the Company’s general meeting held earlier today.

According to Africa Oilfield CEO Carl Esprey the acquisition gives the company a regional footprint from where it can expand its services.

“We now have in place the operational, regional and corporate experience and expertise to rapidly expand our service lines across a broad geographic area, and to bring our turn-key support services to clients operating within the booming East African exploration and development industries, under our new branding of “Atlas Development & Support Services,” He says.

Esprey adds that the success of the company will be based on its ability to maintain an East African identity while offering its high quality standards of services.

“Combining this local presence with high quality, international standard services is of fundamental importance to us, and we are committed to this as we seek to grow Atlas Development & Support Services into an industry leader.”

Africa Oilfield Logistics was first granted the option to acquire Ardan Logistics Kenya in March following the signing of a framework and option agreement pursuant to which:

Overseen by Africa Oilfield, Ardan Risk & Support Services would undertake a corporate and contractual restructuring programme to rationalize operational management and implementation, planning and reporting; and a 3-year conditional call option which provides the right, but not the obligation, to acquire 100% of Ardan Logistics Kenya , a separate and new ‘shell’ company from which the restructured business of Ardan will be operated.

Later in September Africa Oilfield Logistics Ltd announced that the Board has decided to exercise the call option granted to it pursuant to the framework and option agreement announced on 28 March 2014 to acquire the entire issued share capital of Ardan Logistics Kenya Limited.