| Thu 23 Aug 2007, 16:46 | | STO - Set Point Technology Holdings - Disposal of |
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STO
STO
STO - Set Point Technology Holdings - Disposal of the Business of Seran
Engineering and Supplies ("Seran")
Set Point Technology Holdings Limited
(Incorporated in the republic of South Africa)
(Registration Number 1996/014334/06
Share Code: STO ISIN: ZAE000013629
("Sethold")
DISPOSAL OF THE BUSINESS OF SERAN ENGINEERING AND SUPPLIES ("Seran")
1 Introduction
A subsidiary of Sethold has disposed of Seran as a going concern with effect
from 30 August 2007 to SPI 82 (Pty) Limited, a black economic empowerment
company, in terms of an agreement dated 23 August 2007 ("the disposal").
2 Nature of Business
The business conducted by Seran comprises the manufacture and supply of
overburden recovery technology, equipment and services used in underground
mining activities.
3 Sale Consideration
The business of Seran has been sold for R20.5 million, payable in cash.
The subject matter of the sale is the business of Seran, its fixed assets,
patents and inventories. Its debtors and creditors will be retained by the
group and collected and settled in the ordinary course of business.
Shareholders should be aware that the sale consideration for Seran is in
addition to the R19.5 million received from the 30m Sethold shares clawed back
and sold to Mineworkers Investment Company (Pty) Limited as recorded in the SENS
announcement dated 6 July 2007.
4 Rationale for Disposal
In light of the losses previously incurred by Seran and in the context of an
ongoing review of Seran`s business model, the group has concluded that the sale
of Seran on the terms agreed above is in the best interests of Sethold
shareholders.
5 Financial Effects
The unaudited, pro forma financial information of the disposal, set out in the
table below, is the responsibility of the directors. It has been prepared for
illustrative purposes only and because of its nature may not give a fair
presentation of Sethold`s financial position.
4 Before After %
Published sale of Change
(1) Seran (2)
(Loss)/earnings per share (5.6) 2.2 139%
(cents)
Diluted (loss)/earnings per (5.4) 2.1 139%
share (cents)
Headline (loss)/earnings per (1.6) 1.3 181%
share (cents)
Diluted headline (1.6) 1.3 181%
(loss)/earnings per share
(cents)
Net asset value per share 29.7 35.7 20%
Net tangible asset value per 17.1 23.1 35%
share (cents)
Number of shares in issue 336 740 336 740
(`000)
Weighted average number of 335 469 335 469
shares in issue (`000)
Fully diluted weighted 343 602 343 602
average number of shares in
issue (`000)
Notes :
1 The "Before" financial information is based on Sethold`s unaudited,
published results for the six months ended 28 February 2007 which include
the trading results of Seran for that period.
2 The pro forma financial information is based on the assumption that the
disposal took place on 1 September 2006 for income statement purposes and
on 28 February 2007 for balance sheet purposes.
6 Suspensive conditions
All conditions have been fulfilled.
7 Categorisation
The disposal is a Category 3 transaction in terms of the JSE Limited
Listings Requirments.
Isando
23 August 2007
Sponsor
Investec Bank Limited
Date: 23/08/2007 16:46:18 Produced by the JSE SENS Department.
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