Miles Pelham, chairman of Obtala Ltd (LON:OBT), says selling its loss making retail arm for the nominal sum of US$100 makes complete business sense. “It’s much more about the shedding of non-core assets to allow us to focus management time on the areas we felt were the most profitable and have the most future.”
The future lies in agriculture and forestry, with Pelham investing his own money in the latter which he says has ‘huge potential’ and a ‘hell of a lot of supply.’ When asked to quantify just how much, the figures are vast. “We have 312,000 hectares of forestry concessions of exotic hardwood which is considerable.” Considerable indeed as this is approximately 40 times the size of Hong Kong Island.
Pelham says he is not interested in dressing up the business for a sale, but a takeover offer “couldn’t be ruled out.”