| Wed 16 Jan 2008, 10:23 | | DTH - DVT - Acquisition And Withdrawal Of Cautionary |
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DTH
DTH
DTH - DVT - Acquisition And Withdrawal Of Cautionary
DYNAMIC VISUAL TECHNOLOGIES HOLDINGS LIMITED
(Registration Number 2004/016984/06)
Share code: DTH & ISIN: ZAE000109070
("DVT" or "the company")
Acquisition Of Offline Digital And Withdrawal Of Cautionary
Introduction
DVT is pleased to announce that the company has concluded a sale agreement with
Offline Digital (Proprietary) Limited ("Offline Digital") on Monday, 14 January
2007 in terms of which DVT purchased 66,7% of the issued share capital in and
claims against Offline Digital ("the acquisition").
Background to Offline Digital
Offline Digital is a specialist software development company that develops and
implements solutions for content management. These solutions enable multiple
format publishing of personalised, high value content suitable for distribution
over a range of channels.
Founded in 2003, its client base is made up of customers in a number of
industries in South Africa, the UK and the EU. Offline Digital has also attained
the status of Top Technology 100 Company in the Business Day 2003, 2004 and 2005
awards programmes in recognition of its innovation.
Rationale for transaction
The transaction is in line with DVT`s strategy to grow through acquisition and
consolidation of smaller specialist software development businesses. Offline
Digital owns the intellectual property for its core software products which will
be leveraged by DVT. DVT will also get gain access to a number of new clients.
Offline Digital`s growth was limited due to its small size and lack of BEE
credentials, both of which are addressed by being a subsidiary of DVT.
Terms of transaction
In terms of the sale agreement, DVT acquired 66,7% of the issued share capital
in and claims against Offline Digital, with effect from 1 December 2007, for a
consideration of R1,4 million. The purchase consideration is payable in cash.
DVT has an option to acquire the remaining shares in Offline Digital on 1 March
2010 according to a pre-determined formula.
Financial effects of transaction
The financial effect of the transaction on DVT`s unaudited headline earnings per
share, basic earnings per share, net asset value per share and net tangible
asset value per share for the 6 months ended 31 August 2007, had the transaction
been effective 1 March 2007, are not material but are earnings enhancing.
Withdrawal of cautionary
DVT shareholders are referred to the cautionary announcement by DVT dated 3
January 2008. The cautionary notice is no longer required and is hereby
withdrawn.
Johannesburg
16 January 2007
Designated and Corporate Adviser
PSG CAPITAL (PTY) LIMITED
Date: 16/01/2008 10:23:01 Produced by the JSE SENS Department.
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