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BVT
BVT
BVT - Bidvest - Acquisition update and withdrawal of cautionary announcement
THE BIDVEST GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1946/021180/06)
Share code: BVT & ISIN: ZAE0000050449
("Bidvest"or "Group"or "Company")
ACQUISITION UPDATE AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders of Bidvest are referred to the cautionary announcement dated April
10 2007 wherein Bidvest informed shareholders that it was involved in
negotiations relating to a number of potential acquisitions, which if
successfully concluded, may have had a material impact on Bidvest`s share price.
The status of these acquisitions is set out below.
ANGLISS FOODSERVICE IN ASIA
Bidvest has concluded an agreement to acquire 100% of the issued share capital
of the companies Angliss Singapore, Angliss Hong Kong and Angliss China
("Angliss"). The effective date of this transaction is anticipated to be
Tuesday May 8 2007.
Angliss is a leading foodservice wholesaler and distributor in the Asian market,
with annualised sales in excess of US$300 million (R2,1 billion), and employs
approximately 400 people. The business operates from owned facilities in
Singapore, Hong Kong and Guangzho, and also has established distribution
platforms in Beijing and Shanghai in mainland China.
The acquisition of Angliss will compliment Bidvest`s existing foodservice
businesses in the United Kingdom, Europe, South Africa, Australia and New
Zealand. Asia represents a strategic market with massive growth opportunities
and the acquisition of Angliss provides an excellent platform in which to
continue expanding Bidvest`s international interests in the foodservice
industry. This also presents Bidvest with the opportunity of participating in
the exciting growth being experienced in China.
The purchase price for 100% of the issued share capital of Angliss (on an equity
value basis) is approximately US$80 million (R560 million) with a net asset
value of US$33 million (R231 million). Angliss made normalised trading income
of US$7 million (R49 million) and profit after tax of $5 million (R35 million)
for the financial year ended December 31 2006. Angliss`s management projections
are to deliver good growth in the short term. Angliss currently has below
average returns and with Bidvest`s management expertise and focus, is expected
to contribute significantly to Bidvest Australasia`s results in the short term.
The acquisition is to be funded by debt.
VIAMAX
Bidvest has agreed in principle to acquire from Transnet Limited its fleet
management and leasing business Viamax Holdings (Pty) Limited ("Viamax"). Viamax
is to be housed within Bid Auto and is complementary to McCarthy`s fleet
management business which was started approximately 2 years ago. The acquisition
will add significant scale to the fledgling fleet service operations. The
combined base of 9700 vehicles will enable McCarthy`s to realise synergies in
the form of improved operational efficiencies. Growth prospects for the new
enlarged fleet services business are promising and include the ability to
meaningfully compete in the management of outsourced state owned vehicle fleets
as well as the leasing and management of large corporate fleets. The purchase
price of the transaction is to be based on the Viamax net asset value at March
31 2007 plus a premium of approximately R36 million, totalling R1,0 billion
which will be funded by debt. The transaction is subject to a number of
conditions precedent, including certain regulatory approvals and is expected to
become effective by June 30 2007. Further information will be made available on
conclusion of the transaction.
FOODSERVICE BUSINESS IN THE UNITED STATES
Bidvest`s bid to acquire an interest in a foodservice business in the United
States did not materialise.
FINANCIAL IMPLICATIONS OF AGLISS ASIA AND VIAMAX TRANSACTIONS
Based on the historical performances and prospects of these businesses, each of
the transactions will be earnings enhancing and provide meaningful growth
opportunities for the Group in the medium term.
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Bidvest hereby withdraws the cautionary announcement dated April 10 2007.
Accordingly caution is no longer required to be exercised by Bidvest
shareholders when dealing in their Bidvest shares.
Johannesburg
May 2 2007
Investment Adviser and Lead sponsor
Investec Bank Limited
Joint sponsor
Deutsche Securities (SA) (Pty) Limited
Date: 03/05/2007 08:55:02 Produced by the JSE SENS Department.
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