The Obtala Resources Ltd group has launched a process that will culminate with the listing on the London Stock Exchange (LSE) of a company that will own forestry assets in Mozambique, the group said in a statement issued Thursday.
The future company, whose value is being calculated, is expected to be listed on the Alternative Investment Market (AIM) of the London Stock Exchange in the first quarter of 2016.
The group also said it had hired Honour Capital, a company specialising in the forestry management and advisory to make an assessment of forest assets in Mozambique.
The group’s management said it believed hiving off the forestry division was the best option for shareholders, given it allows for a better understanding of the value of those assets and attracts third party investors interested in the forestry sector.
Honour Capital prepared an assessment report in June 2014, which gave the forestry business a net value of US$161 million, which was based on 11 forest concessions with a total area of 279,965 hectares.
The group is completing the acquisition of two new forest concessions with a total area of 35,000 hectares, bringing the total concession area in Mozambique to 314,965 hectares.
In a statement, the group said demand for high quality wood was increasing while supply was falling due to the introduction of measures to ensure the sustainability of the business. In its concession in Mozambique Obtala Resources has access to over 20 different species of trees, “and is therefore well positioned to supply other markets in addition to those it already supplies.” (macauhub/MZ)