RLO - Reunert And PSG Undo Joint Venture In Quince Capital
RLO
RLO
RLO - Reunert And PSG Undo Joint Venture In Quince Capital
Reunert Limited
(Incorporated in the Republic of South Africa)
(Registration number 1913/004355/06)
(Share code: RLO)
(ISIN: ZAE000057428)
REUNERT AND PSG UNDO JOINT VENTURE IN QUINCE CAPITAL
Reunert Limited ("Reunert") and PSG Group Limited ("PSG) have agreed to end
their joint participation in Quince Capital Holdings (Pty) Limited ("Quince")
formed in May 2007.
The subprime crisis has the potential of greatly increasing the cost of funding
to Quince necessitating exploring alternate ways of financing the business.
Such evaluation of funding options has led the partners in Quince to conclude
that it would be in the interest of shareholders to undo the joint venture.
Consequently, Reunert will acquire all the shares not owned by Reunert in Quince
for approximately R 420 million, being the original amount invested by the
exiting shareholders, plus the retained profit in Quince attributable to these
shareholders for the period 2 May 2007 to 31 January 2008 payable in cash.
Simultaneously, PSG, Michiel le Roux and management will purchase their original
investments previously sold to Quince, i.e. Quince Property Finance and Quince
Scripfin from Quince for approximately R25 million being the original selling
price plus the retained profit attributable to Reunert in these entities payable
in cash. The loans advanced by Quince to these businesses will be repaid.
The agreement is subject to the finalisation of agreements between all Quince
shareholders and regulatory approvals and, if approved, will have an effective
date of 1 February 2008. The deal is expected to be earnings enhancing for
Reunert.
Sandton
5 February 2008
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 05/02/2008 16:39:03 Produced by the JSE SENS Department.
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