| Wed 20 Feb 2008, 9:18 | | SUL - SAB&T Ubuntu Holdings Limited - Acquisition of the data factory and |
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SUL
SUL
SUL - SAB&T Ubuntu Holdings Limited - Acquisition of the data factory and
withdrawal of cautionary announcement
SAB&T UBUNTU HOLDINGS LIMITED
(formerly Abrina 4166 Limited)
(Incorporated in the Republic of South Africa)
Registration number: 2006/029387/06
JSE Share Code: "SUL"
ISIN Code: ZAE000088837
ACQUISITION OF THE DATA FACTORY AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
River Group is authorised to announce that, following the announcement made on
SENS on 12 February 2008, with effect from 1 March 2008, a 42% interest has been
acquired in The Data Factory (Pty) Ltd. The Data Factory (Pty) Ltd is involved
in the providing end-to-end solutions in the retirement fund and benefit
industry, including a contact centre, tracing, back office processes,
consulting, online data verification and online data sourcing, The Data Factory
solutions are underpinned by international best practise and a world-class
technology platform. It is estimated that The Data Factory has 75% of local
market share.
2. BACKGROUND AND RATIONALE
Following the listing of its securities on the AltX, a division of the JSE
Limited on 30 November 2006, SUHL has been actively negotiating with businesses
which either operated in its core business activities or which complemented the
existing operations of the company. In terms of strategic fit, The Data Factory
aligns with Funanhi Investment Holdings (Pty) Ltd, a company in which the Group
owns a 10% interest. This transaction will contribute to the company attaining
critical mass, thereby benefiting from economies of scale. SUHL will be
actively investigating other opportunities as they present themselves.
3. PURCHASE CONSIDERATION AND FINANCIAL EFFECTS
SUHL has entered into an arms length agreement with the shareholders of The Data
Factory. The payment consideration is R4.5m, payable in 75% cash and 25% SUHL
shares after fulfilment of the conditions precedent referred to below. Profit
warranties extending to February 2009 will influence the purchase price should
it not be achieved.
As the above transaction is of a strategic nature, financial effects of this
transaction have not been calculated as the board is of the opinion that, on its
own, it will not have a material effect on the financial position of the
company.
4. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the cautionary announcement dated 13 February 2008,
and are advised that caution is no longer required to be exercised by
shareholders when dealing in their securities.
Centurion
20 February 2008
Corporate and Designated Advisor
River Group
Date: 20/02/2008 09:18:41 Produced by the JSE SENS Department.
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