FWX - FoneWorx - Sale Of Shares In Alto Network Communications (Pty) Limited
FWX
FWX - FoneWorx - Sale Of Shares In Alto Network Communications (Pty) Limited
FoneWorx Holdings Limited
Registration number 1997/010640/06
Share code: FWX & ISIN code: ZAE000086237
("FoneWorx")
SALE OF SHARES IN ALTO NETWORK COMMUNICATIONS (PTY) LIMITED
The company has agreed to sell its 40% interest in Alto Network Communications
(Pty) Limited ("Altonet") as well as its loan account and any rights it may have
to further equity in that company to Gareth Tudor ("Tudor") ("the transaction").
Altonet is an internet service provider.
The effective date of the transaction is 01 March 2008. Tudor is currently
Financial Director of the company, but will be retiring on 28 February 2008.
The consideration is R800,000 which amount is to be settled in cash by no later
than 31 March 2008. Tudor is a related party, but the size of the transaction
is below the related party categorization threshold as per the JSE Listings
Requirements and accordingly no independent opinion is needed on the fairness of
the transaction. There are no conditions precedent to this transaction.
The company decided to sell Altonet as it is not core to the operations of the
company, and the sale will assist the company to concentrate on its other
divisions which are showing exceptional growth and potential. The cash realized
will be added to the cash reserves of the company.
The table below sets out the unaudited pro forma financial effects of the
transaction for the twelve months period ended 30 June 2007. The unaudited pro
forma financial effects are presented for illustrative purposes only and because
of their nature may not give a fair reflection of the company's results,
financial position and changes in equity, after the transaction.
It has been assumed, for the purpose of the unaudited pro forma financial
effects, that the transaction took place on 30 June 2007 for balance sheet
purposes and 1 July 2006 for income statement purposes. The directors of the
company are responsible for the preparation of the unaudited pro forma financial
effects.
Per ordinary share Notes Before After Change
(cents) (cents) (%)
Earnings 1 7.89 8.17 3.39
Headline earnings 1 8.20 8.48 3.36%
Note:
1. The amounts in the "before" column represent the audited earnings per
share and headline earnings per share as disclosed in the financial results
for the year ended 30 June 2007. The amounts in the "after" column
represent the unaudited earnings per share and headline earnings per share
after the transaction based on the assumptions that the transaction was
effective 1 July 2006 and that the cash proceeds have been invested at an
after-tax return of 5.5% per annum.
2. The effect of the transaction on the net asset value per share and on the
net tangible asset value per share, as at 30 June 2007, is insignificant.
Randburg
4 February 2008
Designated advisor
Deloitte & Touche Sponsor Services (Pty) Limited
Date: 04/02/2008 17:15:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
