UK company plans NSE listing after buying out Kenyan firm

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Atlas Development, formerly known as Africa Oilfields Logistics Company, said it now fully owns Ardan Logistics Kenya, a subsidiary in which it had a 49 per cent stake.
The firm said it is still on course to list 10 per cent of its shares on the NSE’s Growth Enterprise Market Segment by the end of the year.
Atlas Development’s listing will make it the first company to cross-list on both the NSE and the London Stock Exchange.

Atlas Development, a UK firm that is planning to list at the Nairobi Securities Exchange (NSE), has completed buying Ardan Logistics Kenya and is planning to expand to Djibouti.

Atlas Development, formerly known as Africa Oilfields Logistics Company, said it now fully owns Ardan, a subsidiary in which it had a 49 per cent stake.

The firm did not indicate at what price it bought out the remaining share in Ardan, which carries out engineering works, fuel solutions, storage and transportation, medical and facilities management businesses.

The company said it is expanding to Djibouti to grow its revenues by targeting oil and gas companies.

“The logistics hub that we commenced building post year end in the Turkana region of Kenya will provide significant operational efficiencies, as will our planned expansion into Djibouti – a key strategic port which will give Atlas Development a significant competitive advantage when pitching for new contracts,” said Atlas Development chairman Ian Mann in a statement.

Mr Mann said the company is still on course to list 10 per cent of its shares on the NSE’s Growth Enterprise Market Segment by the end of the year.

“The Kenyan listing, which will be completed by way of an introduction and private placing of up to 10 per cent of the company’s enlarged share capital and will be offered solely in Kenya, is expected to take place by the end of December 2014,” said Mr Mann.

Burbidge Capital is the nominated advisor on the listing and Anjarwalla & Khanna will handle the legal work.

READ: London firm seeks Nairobi listing as it eyes oil boom

The mining, oil and gas industry is expected to attract more companies that offer support services to exploration firms, such as logistics companies.

Global logistics company DHL said companies are coming to offer supply chain solutions in areas that have low level of infrastructure development.

“Supply chains supporting conventional energy market are still developing as companies have had to expand into ever more inaccessible and remote locations to support the growth in global demand,” said DHL vice president (energy sector) for Europe, the Middle East and Africa, Jonathan Shortis.

Local firms are also moving to the sector to service companies that are drilling for oil in remote parts of northern Kenya.

TransCentury, through its engineering subsidiary Civicon, has been contracted by Tullow Oil of the UK to construct access roads and other works.

Atlas Development’s listing will make it the first company to cross-list on both the NSE and the London Stock Exchange.