| Thu 6 Dec 2007, 13:22 | | CRG - Cargo - Disposal of the letting business and the property described as |
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CRG
CRG
CRG - Cargo - Disposal of the letting business and the property described as
portion 306 of The Farm Rietfontein no. 63 IR, Gauteng ("The Disposal") and
withdrawal of cautionary announcement
CARGO CARRIERS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1959/003254/06)
("Cargo" or "the company")
ISIN Code: ZAE000001764 & Share code: CRG
DISPOSAL OF THE LETTING BUSINESS AND THE PROPERTY DESCRIBED AS PORTION 306 OF
THE FARM RIETFONTEIN NO. 63 IR, GAUTENG ("the disposal") AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT
Introduction
Cargo, through its wholly owned subsidiary, Cargo Carriers Workshop Property
(Proprietary) Limited ("the seller") announces the disposal of its letting
business including the property described as Portion 306 of the Farm Rietfontein
No. 63 IR, Gauteng, measuring approximately 12, 1404 hectares, held under Title
Deed number T32866/1964, together with all improvements thereon ("property"), to
The Truzen 12 Trust ("the purchaser"). The disposal is for a total purchase
consideration of R95 000 000-00 (ninety five million Rand) subject to the
conditions precedent noted below. The purchaser is not a related party to Cargo.
Conditions precedent
The disposal is subject to approval by shareholders of Cargo in general meeting
and the obtainment of the approval of the Competition Commission or the
Competition Tribunal, if applicable.
Terms of the disposal
Payment of the purchase price shall be effected by the purchaser in full on the
date on which the property is transferred to the purchaser.
Rationale for the disposal
The letting business and the property is largely surplus to Cargo`s needs. The
value of the company`s property portfolio is regarded as high in relation to its
operating assets. The proceeds will allow for further organic growth and
acquisitions as well as reduction in debt and possible improved dividend.
Pro forma financial effects of the disposal
The table below summarises the pro forma financial effects of the disposal on
the un-audited financial statements for the half-year ended 31 August 2007. The
financial effects are the responsibility of the directors and have been prepared
for illustrative purposes only, to show the possible financial effects. The pro
forma financial effects, because of their nature, may not give a true reflection
of the financial position, the statement of changes in equity, the results of
operations or cash flow of Cargo.
The earnings per share and the headline earnings per share are for a six month
period, whereas the effect of the profit on the sale of the letting business is
shown in full. Consequently the percentage change as reflected in the table
below would be diminished if full year earnings were utilized.
31 Aug 2007 01 Sept 2007
Before disposal After disposal % change
Weighted average
shares in issue (`000) 19 400 19 400 0%
Earnings per share
ordinary share (cents) 39.46 212.08 437%
Headline earnings per
ordinary share (cents) 63.52 184.87 191%
Shares in issue at
period end (`000) 19 400 19 400 0%
Net asset value per
share (cents) 12.46 14.19 14%
Net tangible asset value
per share (cents) 12.46 14.19 14%
Assumptions:
* Proceeds from the sale of the property will be invested in the interim
period with the bank.
* Opportunity cost and revenue in respect of rental charges to be incurred by
Cargo as well as lost revenue from existing tenants together with current
building operational costs have been taken into account in adjusting
headline earnings per share.
* Profit on sale of the property subject to capital gains tax has been
calculated using the time apportionment formula.
Shareholder approval
The disposal requires the approval of Cargo shareholders in general meeting. A
circular, containing full details of the disposal and incorporating a notice of
general meeting, will be posted to shareholders within approximately 28 days of
this announcement.
Withdrawal of cautionary announcement
Shareholders are referred to the cautionary announcement dated 04 December 2007,
and are advised that the negotiations regarding the disposal are now complete
and caution is no longer required to be exercised by shareholders when dealing
in the companies securities.
06 December 2007
Sponsor
Arcay Moela Sponsors (Pty) Ltd
Attorneys to the transaction
HR Levin Attorneys, Notaries and Conveyancers
Date: 06/12/2007 13:22:02 Produced by the JSE SENS Department.
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