| Thu 6 Mar 2008, 15:43 | | DLV - Dorbyl - Disposal By Dorbyl Of A Portion Of |
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DLV
DLV
DLV - Dorbyl - Disposal By Dorbyl Of A Portion Of The Property Situated At
Struandle, Port Elizabeth
DORBYL LIMITED
(Incorporated in the Republic of SA)
(Registration Number 1911/001510/06)
(Share Code: DLV & ISIN: ZAE000002184)
("Dorbyl")
Disposal By Dorbyl Of A Portion Of The Property Situated At Struandle, Port
Elizabeth
1. The Disposal
1.1 Shareholders are advised that Dorbyl has entered into an agreement
whereby it will sub-divide and dispose of approximately 40% of the
property situated at Struandale, Port Elizabeth to Landport Cement
(Pty) Limited ("the purchaser") ("the disposal").
1.2 The disposal and the implementation thereof is subject to the
fulfilment of certain conditions precedent as described in 5 below.
2. Rationale For The Disposal
The portion of the property being sold is basically vacant ("the vacant
property") and has not been effectively utilised by Dorbyl since
acquisition of the property. As it is unlikely that Dorbyl will in future
use the vacant property, the disposal represents the unlocking of value of
an asset which would otherwise remain an unproductive dormant asset.
3. Consideration And Application Of Consideration
3.1. The disposal consideration for the disposal amounts to approximately R48
million ("the disposal consideration").
3.2. The disposal consideration will be settled in cash against registration of
transfer of the vacant property into the name of the purchaser.
3.3. The disposal consideration will be used by Dorbyl for working capital
requirements and business expansion if and when considered opportune.
4. Financial Effects
4.1. The table below sets out the unaudited pro forma financial effects of the
disposal on the earnings, headline earnings, net asset value and net
tangible asset value per Dorbyl share, based on the assumptions that:
4.1.1. for purposes of the earnings and headline earnings per share
calculations:
- the disposal was effective during the interim period of six
months ended 30 September 2007; and
- the whole of the disposal consideration was received on
1 April 2007 and that such consideration was invested to earn an
after-tax return of 7.1% during the interim period ended
30 September 2007;
4.1.2. for purposes of the net asset value and net tangible asset value per
share calculations, the disposal was effected on 30 September 2007:
Unaudited(1) Pro - forma Change
Before After (%)
(cents) (cents)
(Loss)/earnings per (39.7) 94.4 337.9
share(2)
Headline (38.9) (33.9) 12.8
(loss)/earnings per
share(2)
Net asset value per 1 339 1 468 9.6
share(3)
Tangible net asset 1 339 1 468 9.6
value per share(3)
Notes
(1) Extracted from the unaudited interim financial statements of
Dorbyl for the six months ended 30 September 2007.
(2) Based on a weighted average of 33,924 million shares in issue
during the interim period ended 30 September 2007.
(3) Based on 33,924 million shares in issue at 30 September 2007.
4.2. The financial effects contained in the table in 4.1 above have been
prepared for the purposes of illustrating how the disposal would have
affected the relevant financial ratios of Dorbyl for the historic financial
period indicated and are pro forma only. Accordingly, such effects do not
necessarily represent a true reflection of the financial effects of the
disposal on Dorbyl`s current and future earnings and net asset value.
5. Conditions Precedent
The disposal is subject to, inter alia, the following conditions precedent:
- approval by the Surveyor General of the subdivision of the property;
- the approval of the disposal by the Competition Authorities to the extent
necessary;
- the purchaser furnishing adequate financial guarantees to Dorbyl in a form
acceptable to Dorbyl;
- approval of the disposal by the Board of Directors of Dorbyl; and
- the mutual consent of the parties to the disposal of any conditions and or
requirements that might be required by the local municipality.
Johannesburg
6 March 2008
Sponsor
PSG Capital (Pty) Ltd
Date: 06/03/2008 15:43:11 Produced by the JSE SENS Department.
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