Amala Foods PLC on Monday said it has agreed to buy Terra Rara UK Ltd wholly in shares.

The Jersey-based food technology firm, formerly known as BigDish, has signed a sale and purchase agreement with the rare earth elements company TRUK, which indirectly own interests in two rare earth projects in Angola and Uganda.

Amala said the proposed acquisition would constitute a reverse takeover, conditional upon the company publishing a prospectus and reapplying for admission of the official list of its shares.

Amala said: ‘The execution of the SPA is a significant milestone towards a complete rebirth of the company that provides value to shareholders in excess of the current share price. Rare Earth Elements are garnering significant market interest and for good reason.’

The company has also decided to dispose if its stake in the Philippine joint venture company Amala Foods Inc to its local partner in light of the proposed acquisition.

Amala shares were at 0.41 pence each on Monday afternoon in London.

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