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Obtala Ltd sells off African retail outlets for US$100.

Chairman Miles Pelham said he hoped buyer Rystabelz will build LCS into a prosperous retail network after the group disposed of its 72.69% owned chain of Lifes' Comfort Solutions (LCS) retail outlets

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Pelham said Obtala could now focus on expanding its production capacity within forestry and agriculture

Obtala Ltd (LON:OBT) is now solely focused on agriculture in Tanzania and forestry in Mozambique - as it sold off the last of its non-core ventures - the retail arm - for a mere US$100.

Chairman Miles Pelham said he hoped buyer Rystabelz will build LCS into a prosperous retail network after the group disposed of its 72.69% owned chain of Lifes' Comfort Solutions (LCS) retail outlets, via subsidiary African Home Stores (AHS).

The deal is expected to complete within  90 days, conditional upon all minority shareholders.

The retail division made losses before tax of around £0.75mln on turnover of around £3.125mln in the year to end December, 2015.

AHS must still pay US$225,000 from the original purchase in 2014  in monthly instalments with final payment due in June 2017.

Pelham added the firm could now focus on expanding its production capacity within forestry and agriculture, which is progressing well, whilst avoiding continuing losses from retail operations.

Results for the six months to June 30 will be announced on September 30.

Shares added 2.04% to 12.5p in early deals.

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