| Thu 1 Nov 2007, 17:40 | | IPL/IPLP - Imperial - Leasing and capital equipmen |
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IPL IPLP
IPL
IPL/IPLP - Imperial - Leasing and capital equipment division, cautionary
announcement and review of current trading
Imperial Holdings Limited
("Imperial" or "the Group")
Registration number (1946/021048/06)
Ordinary share code: IPL & ISIN: ZAE000067211
Preference share code: IPLP & ISIN: ZAE000088076
LEASING AND CAPITAL EQUIPMENT DIVISION, CAUTIONARY ANNOUNCEMENT AND REVIEW OF
CURRENT TRADING
Introduction
Imperial announced in August this year that it would review its business
portfolio with a view to optimize the usage of capital, gearing capacity and
growth prospects. In addition to the proposed disposal of Tourvest and the
major elements of the Aviation business, Imperial has identified its leasing
and capital equipment division ("Leaseco") as a business requiring further
investigation in this regard.
Imperial is currently investigating the financial impact, tax and legal
implications, and the optimal capital structure of the various alternatives
regarding Leaseco, including unbundling, to optimize gearing capacity and
unlock value for shareholders. In this regard, it has embarked on a process to
engage the relevant stakeholders, including funders, Imperial`s BEE partners,
business partners and minority investors in the relevant businesses.
Rationale
Through its decentralized approach, Imperial has proven its ability to create
businesses of considerable scale and with the maturity to grow independently
and attract their own debt and equity investor bases. Leaseco, which
comprises Imperial Fleet Services, Imperial Flexi Fleet, Saficon Industrial
Equipment, Impact Forklifts (UK), MCC and the distributorships for Terex and
New Holland earth moving equipment, being a business of significant scale
which lends itself to a high degree of financial leverage, has in our opinion
reached that point.
Cautionary announcement
Pursuant to the ongoing evaluations mentioned above, Imperial shareholders are
advised to exercise caution when dealing in their Imperial shares until a
further announcement is made.
UPDATE ON DISPOSAL OF NON-CORE ASSETS
The process of disposal of the group`s interest in Tourvest and the major
elements of the Aviation division is well underway.
UPDATE ON TRADING ENVIRONMENT
At the time of releasing its full year results for 2007, Imperial advised
shareholders that the motor dealership, distributorship and insurance
businesses were likely to experience difficult trading conditions. Since our
previous announcement, further increases in interest rates and the continuing
effects of the implementation of the National Credit Act have added to the
decline in motor vehicle and related insurance sales. The Logistics, Car
Rental and Leasing & Capital Equipment divisions are performing well but
Commercial Vehicle Holdings continues to operate at a loss. Based on early
indications, headline earnings for the half year and the full year are
expected to be lower than last year.
Sandton
1 November 2007
Sponsor to Imperial
MERRILL LYNCH SOUTH AFRICA (PTY) LIMITED
Merchant bank and transaction sponsor to Imperial
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Corporate law advisers to Imperial
TUGENDHAFT WAPNICK BANCHETTI AND PARTNERS
Date: 01/11/2007 17:40:47 Produced by the JSE SENS Department.
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