Alliance One Announces the Sale of Assets in Malawi

Source from:  worldtobacco.co.uk 01 April 2008 04/11/2008

Alliance One International today announced that its wholly-owned subsidiary, Alliance One Tobacco (Malawi) Limited ("AOI Malawi") has completed the previously announced sale of its Lilongwe North Factory facility, including one threshing line and other related assets, to Africaleaf Processors Limited. The gross proceeds to AOI Malawi are approximately US$14.8mn, of which $9.5mn will be recorded as a gain on sale of assets. AOI Malawi separately made an additional investment to enhance the capacity of its Lilongwe South Factory, reflecting the Company's continued commitment to and confidence in the Malawi tobacco industry. In making the announcement, Pete Harrison, the Company's Chief Executive Officer, stated: "The sale of the Malawi assets is consistent with the Company's continued strategic focus of identifying and pursuing cost savings and further right-sizing our strategic global footprint." Enditem