BioEnergy Africa : Sugar Cane investmets in Africa/Mozambique : Edmonds lists cane producer
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Edmonds lists cane producer
By Eamonn Rafferty
Published: August 31 2008 22:31 | Last updated: August 31 2008 22:31
Phil Edmonds’s fondness for Aim and Africa shows no signs of abating as he prepares to list his fourth company from the continent on the junior market today.
This time the former England cricketer is coming to market with BioEnergy Africa, which was set up to produce ethanol from sugar cane plantations in southern Africa .
The company’s first project is in south-west Mozambique, where it has a 30,000ha site under cultivation at Massingir.
The first phase of securing a clearing and water has been completed, allowing for the production of about 600,000 litres of ethanol a day. BioEnergy hopes to double that at full production.
The company is targeting the increasing global demand for ethanol production and, in spite of increasing ambivalence by environmental campaigners to the practice, still sees it as a low-carbon alternative to fossil fuels.
BioEnergy has raised £8.6m ahead of its listing, through the issue of 68.8m new shares at 12½p each. This represents about 20 per cent of the enlarged share capital and will give the company a market capitalisation of £41.5m on admission.
Seymour Pierce is adviser and Haywood Securities broker to the listing.
Mr Edmonds, born in the former Rhodesia , has developed a range of commercial interests in the continent. Aim-listed companies in which he has a stake there include resources groups White Nile and Camec and African Medical Investments.
He has high hopes for BioEnergy Africa and expects it to be the first of many commercial opportunities in sugar cane and ethanol in southern Africa .
He said: “The project marks the inaugural project to position BioEnergy as a leading developer of bio-energy projects in Africa with a strong sustainable policy that ensures ecological development is maintained in tandem with creating employment for local communities.
“With development already under way at Massingir, we anticipate good returns for investors in this fast-growing sector, which we hope to increase as we build our project base and activity levels across southern Africa .”