Agriterra approves Mozambique business disposal and name change

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Agriterra approves Mozambique business disposal and name change

8:54 CAT | 01 Apr 2025

FILE - Agriterra's DECA headquarters in Chimoio, Manica province, central Mozambique. [File photo: Agriterra]

Agriterra Limited will dispose of its Mozambique Agricultural Business

The company will change its name to PACSCo Limited

Agriterra had announced early in March the proposed sale of its entire Mozambique agricultural business to Chepstow Investments Limited, its majority shareholder.

Agriterra Ltd (AIM:AGTA), the AIM-quoted African agricultural company, announced yesterday that its shareholders have approved the proposed disposal of its Mozambique Agricultural Business and the change of the company’s name to “PACSCo Limited.” The resolutions were passed at a General Meeting following a notice issued on March 10, 2025.

The first resolution regarding the disposal was passed nearly unanimously with 99.99% of the votes in favor. The second resolution for changing the company name also received a similar level of support. The total votes cast for each resolution were exactly 52,980,153, with no votes withheld.

The disposal of the Mozambique Agricultural Business will see Chepstow, the counterparty in the transaction, release Agriterra from its obligations related to the CIL-AGTA Debt, which stands at approximately $15.1 million as of this Monday. Chepstow will also cover the disposal costs of around £80,000, settle the company’s outstanding trade creditors estimated at £170,000, and provide Agriterra with up to £750,000 as a Working Capital Facility.

Completion of the disposal is expected within two months from Monday, during which Agriterra will not manage or fund the Mozambique Agricultural Business or be entitled to its cash flow. If the disposal completes by May 31, 2025, the CIL-AGTA Debt’s anticipated value will be approximately $15.4 million.

Post-disposal, Agriterra will operate as an AIM Rule 15 cash shell, with directors expressing hope for opportunities to deliver enhanced shareholder returns.

READ: Agriterra to sell Mozambique operations, become cash shell

The company’s name change to “PACSCo Limited” will be finalized upon the issuance of a certificate by the Guernsey Registrar of Companies, expected within 14 days after the application submission. The company’s tradeable instrument display mnemonic (TIDM) will be changed to “PACS” to reflect the new name. Further announcements will be made once the name change becomes effective.

This strategic move comes as part of Agriterra’s efforts to reshape its business structure and focus on opportunities that can potentially offer better returns to its investors.