BVI group agreed on the terms of US$130 mln investment

Orca Exploration Group, an international public company registered in the British Virgin Islands, finalized terms for strategic investment by Swala Oil & Gas (Tanzania) plc, which is US$130mln worth. Swala is an independent oil & gas exploration and production company, the first to be listed on an East African Stock Exchange.

Under the terms of the investment agreement, Swala will acquire up to 40% interest in BVI company’s wholly owned subsidiary, a Mauritius-registered company and the sole shareholder of PanAfrican Energy Tanzania Limited. The investment transactions are based on an agreed value of US$325mln for Orca’s subsidiary, approximately 85% of the purchase price is payable in cash.

Orca Group secures a strategic investor in Swala with international institutional and Tanzanian investor support. The first investment transaction is to be completed on or before 12 January 2018, and the remaining transactions are to be completed on or before 28 January 2018.

According to BVI group’s chairman and CEO W. David Lyons, “This is a transformational transaction for Orca. To the broader Orca Group, this investment is strategic in both underpinning the intrinsic value of our business and providing a platform from which to grow and diversify our company and deliver value to our shareholders.”

West African Minerals reported interim financial statement

West African Minerals Corporation, British Virgin Islands-registered corporation working in the sphere of iron ore mining and exploration, announced its unaudited consolidated interim financial statements for the period ended 30 September 2017. For the reported period, company’s total assets decreased to £2.8mln as compared to £22.2mln for the period ended 30 September 2016. Company’s cash at hand made £2.67mln (£3.15mln in the previous reported period). Also, according to the report, operational expenses continue to be rigorously controlled.

Also, the group reported total comprehensive loss of £19.4mln, as compared to £0.07mln during the same financial period of the previous year. Basic and diluted loss per share increased to 0.05 pence per share (0.03 pence in the period ended 30 September 2016). West African Minerals’ shareholders’ equity at 30 September 2017 was £2.64mln (£22.04mln at 31 March 2017); the 88% reduction was primarily the result of the full impairment of Sanaga costs incurred during the period.

The BVI group continues to follow the strategy of reducing operational and corporate expenditure to preserve its cash positions. This includes significant reduction of the operational team and exploration field activities, successful reduction in the lease area size in Cameroon, and optimization of Corporate overheads. It is expected that the strategy will remain in place until the next financial year end.

BVI company made US$28mln offer to buy stores of Vitamin World

Valuable Hero International, the British Virgin Islands-registered company which is an afiiliate of a Chinese dairy producer Feihe International Inc., made a US$28 million offer to acquire 156 remaining stores of Vitamin World, the Holbrook-based retail chain that filed for bankruptcy protection in September 2017.

Beside paying US$28 million cash, the BVI company according to the new bid will also assume liabilities of about US$1.2 million for employees’ accrued vacation and sick days, and pay half the costs related to property leases that exceed US$2.4 million.

This bid followed the previous US$26 million bid with Holbrook-based Latium Enterprises which fell through. The expected closing date for the current one with Valuable Hero is on or before December 31, 2017. Under the agreement, the BVI company would receive a “break-up fee” of US$500,000 and expenses of up to US$350,000 in case the transaction is not consummated.

Vitamin World was previously owned by Nature’s Bounty Co., which sold 90% of the chain in February 2016 to Manhattan private equity firm Centre Lane Partners LLC for about US$25 million.

Atlas Mara Limited reported financial results for Q3 2017

BVI-domiciled Atlas Mara Limited, the sub-Saharan African financial services group, announced unaudited financial results for the nine months ended 30 September 2017. For the reported period, total net profit of the group was US$15.8 million, compared to US$4.0 million for the same period of 2016, and US$4.3 million net profit reported for the Q3 ended September 2017, compared to US$2.8 million for the third quarter of the previous year.

Total income of the BVI group increased by 6.7% largely driven by an increase of 56.2% in net interest income. Non-interest income decreased by 30.0% mainly due to declines in Botswana, Mozambique and Shared Services and Center. The increase in net interest income has been supported by the decrease in the Group’s cost of funds from 8.3% reported at September 2016 to 5.2% as at 30 September 2017.

Equity reported at the end of the period was US$757.5 million, an increase of US$231.4 million from 31 December 2016, mostly driven by the completion of the US$200 million strategic financing transaction and equity placing concluded during Q3. Book value per share was US$4.44 at 30 September 2017, compared to US$7.18 at 30 June 2017. Tangible book value per share was US$3.58 at 30 September 2017, compared to US$5.31 at 30 June 2017.