Milost Advisors team has conducted the financial and operational due diligence review of the previously announced South African target company
OREANDA-NEWS. PHI Group (OTC Markets:PHIL), a U.S. diversified holding company currently engaged in conventional energy, renewables, natural resources and special situations, announced today that the Milost Advisors team has conducted the financial, technical and operational due diligence review of the previously announced South African target company (“TARGET”) and will begin the legal due diligence on Friday August 19, 2016.
Henry Fahman, Chairman and CEO of PHI Group, joined Milost Advisors and the TARGET’s senior management last week in Johannesburg, South Africa to review major aspects of the target company’s overall operations including corporate governance, corporate finance, portfolio companies, discontinued operations, legal proceedings, SHERQ management system (Safety, Health, Environment, Risk and Quality) and site visits and also discussed potential post-acquisition initiatives that may substantially enhance value for the TARGET.
The entire due diligence process is expected to be completed next week and the transaction is scheduled to close in September 2016.
The TARGET is a leading company in the natural resource and construction material space in South Africa with average annual revenues of approximately $70 million during the last two years.
On another note, during Henry Fahman’s visit to South Africa, PHI Group also signed a Memorandum of Understanding to acquire majority interest in another company that has diamond mining rights in Kimberly, South Africa. The consummation of the diamond-mining project is subject to further due diligence and feasibility study.
Nozipho Mnyandu, Senior Analyst at Milost Advisors in Johannesburg, commented: “We are delighted in advising PHI Group as they venture into their first South African transaction and meeting Henry last week during the site visit was also invigorating. Furthermore, the Milost Advisors team is pleased to announce the near completion of the due diligence review process.”
Bonisile Mtsweni, Vice President at Milost Advisors in Johannesburg, concurred: "We're pleased to have undergone the site visit with Henry and working with a leader of Henry's caliber has been an extremely rewarding experience. The due diligence process has been very enlightening and we expect to complete rather soon. This venture will be PHI's first venture in South Africa and as Milost Advisors, it is our pleasure to be part of this journey."