Efora Energy Limited (JSE Share Code: EEL) has unveiled a strategic move with the announcement of its Category 2 Acquisition. The company has entered into agreements with Force Fuel Properties Proprietary Limited (FFP) and Force Fuel Proprietary Limited (FF), both in liquidation, to acquire a prime property and movable assets.
Efora Energy Limited is set to acquire immovable property, specifically Erf 382 Alrode Extension 5 Township, from FFP. This property, situated at 34 Flamink Road, Alrode Extension 5, Alberton, Gauteng, spans an impressive 3,600 square meters.
Simultaneously, the company will acquire various movable assets from FF, including office furniture, fuel pumps, and other items detailed in the agreements.
The total purchase consideration for both the property and movable assets is a substantial R3,800,000.
The move aligns with Efora Energy’s overarching business strategy, particularly in supporting the wholesale aspect of its operations. The property’s strategic location in a key industrial node, close to major oil companies, is expected to enhance the company’s supply chain capabilities, both directly and indirectly.
| Item | Amount (Rand) |
|---|---|
| Property | R3,600,000 |
| Movable Assets | R200,000 |
| Total Purchase Consideration | R3,800,000 |
Efora Energy Limited plans to finance the acquisition using its available cash resources.
As of the announcement date, the Board of Directors has granted approval for the acquisition, and there are no outstanding conditions precedent.
The anticipated effective date of the acquisition is set to be around 29 February 2024, coinciding with the transfer of property ownership from the sellers to Efora Energy Limited.
The property is sold “voetstoots” and as it stands, with no warranties, undertakings, or representations from the seller regarding the property.
Efora Energy Limited’s latest move signals a strategic effort to bolster its position in the energy sector. With the acquisition of prime property and essential movable assets, the company aims to strengthen its wholesale operations and enhance its overall supply chain capabilities. The anticipated effective date of the transaction is a crucial milestone as Efora Energy Limited continues to navigate and expand within the dynamic South African energy landscape.
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