| Thu 8 May 2008, 16:31 | | BFS - Blue Financial Services Limited - Acquisitio |
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BFS
BFS
BFS - Blue Financial Services Limited - Acquisition Of Nedfin Limited
BLUE FINANCIAL SERVICES LIMITED
(Registration number 1996/006595/06)
(Incorporated in the Republic of South Africa)
JSE Code: BFS
ISIN: ZAE000083655
("Blue")
ACQUISITION OF NEDFIN LIMITED
1. Introduction
Blue is pleased to announce that Blue Employee Benefits (Pty) Limited Botswana,
a wholly-owned subsidiary of Blue ("BEB"), has entered into a sale agreement on
Thursday, 8 May 2008 in terms of which BEB purchased the entire share capital in
and claims against Nedfin Limited ("Nedfin") from, inter alia, Johannes
Hendrikus Jonck, Salmon Johannes Jonck, Gert Johann Daniel Jonck, Tailored
Investments Limited and Dynamic Growth Limited ("the Sellers") ("the
acquisition").
2. Background to Nedfin
Nedfin, a company duly incorporated in Zambia under registration number 56964,
commenced trading in July 2005 and was granted its Non-Banking Financial
Institution Licence by the Bank of Zambia in September 2005. It is involved in
the micro-lending business, providing small to medium size loans to individuals
who are gainfully employed and where repayments in respect of such loans are
collected in cash, debit order or through payroll deduction. The business
focuses on short-term lending through its 8 Zambian branches.
3. Rationale for the acquisition
The Acquisition of Nedfin will result in Blue having a combined branch network
in Zambia of 20 branches and will effectively make Blue the single biggest micro
financier in Zambia. Due to the nature of Nedfin`s shorter term loan products,
it is a cash generative business that has seen consistent growth in volumes and
profitability in the last 12 months. This acquisition is part of Blue`s longer
term strategy to become the largest micro finance player in Africa.
4. Terms of the acquisition
4.1 In terms of the sale agreement, Blue acquired the entire issued share
capital in and claims against Nedfin, with effect from 1 April 2008, for a
cash consideration of $9 million (United States Dollars).
4.2 The sale agreement contains warranties and indemnities normal to a
transaction of this nature. In addition, Johannes Hendrikus Jonck, entered
into a 3-year restraint of trade.
4.3 The acquisition was subject to certain suspensive conditions which have all
been fulfilled, including obtaining the necessary regulatory approvals.
5. Financial effects of the acquisition
The financial effects of the acquisition on the audited headline earnings per
share, basic earnings per share, net asset value per share and net tangible
asset value per share of Blue will be published at a later date once the annual
financial statements of Nedfin have been audited.
6. categorisation
The acquisition is a "Category 2" transaction in terms of paragraph 21.10 of the
Listings Requirements of the JSE Limited. There are no related party
considerations.
Johannesburg
8 May 2008
Designated Adviser
PSG Capital (Pty) Limited
Date: 08/05/2008 16:31:01 Produced by the JSE SENS Department.
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