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Companies

Atlas Industries reduces losses on Ethiopia exit

Bell ringing when Atlas share began trading on the NSE in December 2014. FILE PHOTO | NMG
Bell ringing when Atlas share began trading on the NSE in December 2014. FILE PHOTO | NMG 

Troubled firm Atlas Industries has completed the sale of its Ethiopian glass-making subsidiary to two of its existing shareholders, cutting its losses and marking the second market it has exited after Kenya.

Atlas, which was suspended from trading on the Nairobi Securities Exchange (NSE) in May, says it has sold TEAP Glass Plc to Innovative Africa Investments Ltd and Eagle Investments Ltd.

In the deal, the two firms have surrendered 276.7 million shares — equivalent to an 18 per cent stake — they hold in Atlas.

In return, they have acquired the rights to seek recovery of $2.4 million (Sh247 million) which Atlas says was illegally seized from its bank accounts by Ethiopian authorities.

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