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GRF
GRF
GRF - Group Five Limited - Acquisition of Sky Sands (Proprietary) Limited
GROUP FIVE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/000032/06)
Share code: GRF ISIN: ZAE000027405
("Group Five" or "the company")
Acquisition by Group Five of Sky Sands (Proprietary) Limited
1 Introduction
Nedbank Capital is authorised to announce that Group Five has entered
into an agreement to acquire 100% of Sky Sands.
2 Nature and business of Sky Sands
Sky Sands is involved in the supply of plaster and washed sand
products to building materials merchants, the building industry and
the precast concrete products industry.
Sky Sands has exploitable sand reserves which are estimated to be in
excess of 25 years of production together with further mining
opportunities on the Sky Sands properties.
3 Rationale for the transaction
Sky Sands was identified as a business of strategic importance to
Group Five for the following reasons:
* its business compliments Group Five`s expansion and growth strategy in
the infrastructure sector;
* the transaction assists in mitigating the risk of future materials
shortages with respect to key building and infrastructure projects
undertaken by Group Five in its Gauteng market;
* Sky Sands operates at higher margins than Group Five`s overall group
margin; and,
* it complements the recent acquisition of Quarry Cats by Group Five.
4 Conditions precedent to the transaction
4.1 The transaction is subject to various regulatory approvals,
including the Competition Authorities.
4.2 The transaction agreement contains terms, conditions and
warranties which are standard for an agreement of this nature.
5 Purchase consideration
The purchase consideration for the transaction is R124 million which
equates to a historic price-earnings multiple of 8. The purchase
consideration will be settled from Group Five`s own resources.
This announcement appears as a matter of record only. This
announcement is made voluntarily by Group Five, it is not required in
terms of the JSE Listings Requirements. No action is required by Group
Five shareholders.
Sandton
2 May 2007
Investment bank, corporate adviser and sponsor to Group Five
- Nedbank Capital, a division of Nedbank Limited -
Legal adviser to Group Five
- Prinsloo, Tindle and Andropoulos Inc-
Legal adviser to seller
- George Roper Attorney -
Legal adviser in respect of mining legislation
- Werksmans Attorneys-
Date: 02/05/2007 10:49:29 Produced by the JSE SENS Department.
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