Atlas now disposing of Addis glass company

Troubled NSE-listed firm Atlas Industries #ticker:ADSS has announced the disposal of its Ethiopian glass making subsidiary to two existing shareholders, effectively leaving the company without any assets.

Atlas Tuesday said it is selling East Africa Packaging Holdings Limited and its Ethiopian subsidiary TEAP Glass to Innovative Africa Investments Ltd and Eagle Investments Ltd, in exchange for the 276.72 million shares they hold in Atlas — equivalent to 18 per cent of its total issued shares. 

The sale, which is subject to shareholder approval, comes in the wake of failed attempts by Atlas to recover the Sh247 million ($2.4 million) that was seized from its accounts in May 2016 by the Ethiopian Revenue and Customs Authority, which said Atlas had tax arrears.

Atlas had entered the Ethiopian market in December 2015, intending to put up a glass manufacturing facility in Chancho, near the capital Addis Ababa.

“Despite this, there remains no visibility on when these monies might be returned and safety assured for the company’s staff within the country,” said Atlas CEO Carl Esprey in a statement.

“The board has taken the view that it is not viable to continue operations in Ethiopia.” He also announced that the company has abandoned its plans to invest in the Nigerian betting industry after failing to raise funds for the investment.

Atlas has been suspended from trading at the NSE and the London Stock Exchange, the latter following the resignation of its UK nominated advisers (Nomad).

READ: NSE suspension leaves Atlas shareholders stranded

Its Kenyan nominated advisor I&M Burbidge capital have also served it a notice of termination of services effective end of May.

The firm also announced on Tuesday that two directors have resigned, including its chairman Ian Mann.

Other significant shareholders of Atlas include US Global Investors Fund (18.73 per cent) and French PE Duet group (10.3 per cent) as per filings dated March 2016.