| Mon 19 Nov 2007, 8:55 | | BWK - Buildworks Group Limited - Abridged Pre-List |
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JSE
BUI1
BWK - Buildworks Group Limited - Abridged Pre-Listing Statement
BUILDWORKS GROUP LIMITED
(formerly Boomerang Trading 35 (Proprietary) Limited)
Incorporated in the Republic of South Africa
(Registration number 2007/004935/06)
JSE code: BWK
ISIN: ZAE000110219
("Buildworks" or "the company")
ABRIDGED PRE-LISTING STATEMENT
LISTING OF BUILDWORKS ORDINARY SHARES ON THE ALTERNATIVE EXCHANGE OF THE JSE
LIMITED ("JSE")
This abridged pre-listing statement is not an invitation to the public to
subscribe for Buildworks ordinary shares, but is issued in compliance with the
Listings Requirements of the JSE for information purposes only. The information
in this abridged pre-listing statement has been extracted from a pre-listing
statement issued by Buildworks on 16 November 2007 ("the pre-listing
statement").
1. INTRODUCTION AND HISTORY
1.1 Buildworks is a supplier of heavy building materials to the construction
industry, which are used in the construction of houses, roads, stadiums,
shopping centres, railways, schools, offices and other infrastruture. The
company has two divisions, Building Products and Aggregates. Building
Products currently comprises West End Claybrick (Proprietary) Limited
("West End Claybrick"), which manufactures a range of clay bricks and plans
to extend its product line to include cement bricks, pavers and roof tiles.
Aggregates includes Drift Supersand (Proprietary) Limited ("Drift
Supersand"), a supplier of sand, gravel and stone.
1.2 West End Claybrick is located west of Soweto, Johannesburg, and has a wide
distribution network throughout Gauteng, Free State and the North West
Province. It currently produces approximately 90 million semi-face bricks
per annum in compliance with ASP standards. West End Claybrick has been in
existence since 1991 and is renowned for its consistent high quality and
service. The company has commenced with the development of its concrete
roof tile plant and has an option to acquire a state of the art concrete
brick and pavers plant.
1.3 Drift Supersand has been operating for over 25 years and produces
1.3 million tons of crushed sand and stone per annum. Located at
Muldersdrift, in the West Rand, the quarry is within a 25 km radius of the
high growth Gauteng market. The business is in the process of expanding and
upgrading plant and equipment to increase production to 1.45 million tons
per annum.
1.4 Buildwork`s empowerment partners, Phatsima Quarries (Proprietary) Limited
and Phatsima Brick and Clay (Proprietary) Limited, will in aggregate own
21.5% of the shares in Buildworks after the listing. It is anticipated that
Buildworks` total empowerment shareholding after the listing will be 26%.
2. OVERVIEW OF BUILDWORKS
Buildworks, through its wholly owned subsidiaries West End Claybrick and
Drift Supersand offers a range of heavy building materials to the
construction industry.
Gauteng is currently the principal market catered to, but the company
intends to expand into other markets within South Africa through
acquisitions and distribution agreements.
Opportunities for growth include:
- Upgrading the plant at Drift Supersand, which will entail automation of the
feeders and installation of additional moveable plant and machinery. This
upgrade is expected to increase capacity by as much as 10% once completed.
The major portion of the upgrade will be completed during the annual
shutdown period in January 2008, with the automation of the feeders to be
completed in December 2008. The total cost of the upgrade is estimated to
be R8 000 000.
- Construction of a concrete roof tile plant. The roof tiles will be marketed
under the West End brand. Construction is due to commence in January 2008
and is due to be commissioned in October 2008 at an estimated cost of R28
000 000.
- The group will investigate future acquisitions with the intention of
expanding the product line, entering into new locations as well as vertical
integration, such as entry into the readymix market
3. DIRECTORS
The board of directors of Buildworks are:
Director Age Role and term Qualification Business address
of office
Raoul 39 Executive CA(SA) 6A Sandown Valley
Gamsu director Crescent
(Chief Sandown
Executive Sandton
Officer) 2196
(Indefinite)
Jannie 48 Executive BSc (Mining 6A Sandown Valley
Hooman director Eng), MSc Crescent
(Aggregates) Sandown
(Indefinite) Sandton
2196
Ivor 39 Executive B Com, CA(SA) 6A Sandown Valley
Klitzner director Crescent
(Finance) Sandown
(Indefinite) Sandton
2196
Herman 48 Non-executive 6A Sandown Valley
Mashaba Chairman Crescent
(Indefinite) Sandown
Sandton
2196
Noel 46 Non-executive PhD (Process 6A Sandown Valley
Machingaw director Metallurgy) Crescent
uta (Indefinite) Bsc Sandown
(Engineering) Sandton
(Hons) 2196
(Metallurgy
and Materials)
Map (Wits)
4. SHARE CAPITAL
As at the date of listing the authorised share capital of Buildworks shall
be 1 000 000 000 ordinary shares of R0.00001 each of which 470 000 000
ordinary shares will be issued.
5. DETAILS OF THE OFFER
The offer comprises a private placement by Buildworks to placees to
subscribe for 50 000 000 shares at a subscription price of 100 cents per
share, which offer will raise R50 000 000. The offer opens at 09:00 on
Monday, 19 November 2007 and closes at 12:00 on Thursday, 22 November 2007.
The offer is not subject to a minimum subscription being achieved as the
offer is fully underwritten.
6. LISTING ON THE JSE
Subject to obtaining an acceptable spread of shareholders, the JSE has
granted Buildworks approval for the listing of 470 000 000 ordinary shares
on the Building Materials and Fixtures Sector of the Alternative Exchange
of the JSE list under the abbreviated name "Buildwk" JSE Code "BWK" and
"ISIN ZAE000110219".
The listing will be effective as from the commencement of trade of the JSE
on Wednesday, 28 November 2007.
7. COPIES
Copies of the pre-listing statement in English may be obtained for
information purposes only between 08h30 and 17h00 from Monday, 19 November
2007 to Thursday, 22 November 2007 at the following places:
Buildworks Group Limited
6A Sandown Valley Crescent, Sandown, Sandton, 2196
Java Capital (Proprietary) Limited
2nd Floor, 2 Arnold Road, Rosebank, 2196
Computershare Investor Services 2004 (Proprietary) Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001
Johannesburg
19 November 2007
Corporate advisor, legal advisor and designated advisor
Java Capital (Proprietary) Limited
Auditors and reporting accountants
PKF (Jhb) Inc.
Date: 19/11/2007 08:55:32 Produced by the JSE SENS Department.
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