| Fri 25 Jul 2008, 11:38 | | CEL - Celcom Group Limited - Acquisition by Celcom Group of Vodashop Hatfield |
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CEL
CEL
CEL - Celcom Group Limited - Acquisition by Celcom Group of Vodashop Hatfield
CELCOM GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/021219/06)
JSE code: CEL & ISIN: ZAE000087490
("Celcom Group" or "the company")
ACQUISITION BY CELCOM GROUP OF VODASHOP HATFIELD
Shareholders are advised that Celcom Group has concluded an agreement for the
acquisition of the franchised Vodacom retail outlet known as "Vodashop Hatfield"
as a going concern.
The Vodashop Hatfield business has been acquired from Hunter & Nash Enterprises
(Proprietary) Limited (owned by Mr J D Coetzee) with effect from 1 July 2008,
subject to formal approval for the acquisition being received from Vodacom.
Following the implementation of the acquisition, Vodashop Hatfield will be
integrated into and managed by the Celcom Group subsidiary, V Cellular Stores,
which presently operates a chain of 16 Vodacom retail franchise outlets in the
Gauteng region, with shops in the region`s premier shopping nodes such as Menlyn
Park Shopping Centre, Centurion Mall, Westgate Shopping Centre, Cresta Mall and
Clearwater Mall.
The purchase consideration for Vodashop Hatfield is R5 725 000, payable by
Celcom Group in cash, in instalments over a period of 6 months from the
effective date.
The pro forma financial effects of the acquisition set out in the table below
are the responsibility of the Celcom Group directors and have been prepared for
illustrative purposes only, to show how the acquisition may have effected the
company`s published results for the 6 month period ended 31 December 2007 ("the
interim results"). Due to their nature the pro forma financial effects may not
fairly represent the company`s financial position, changes in equity, results of
operations or cash flows following implementation of the acquisition.
Before After Change
Net tangible asset value per 7.58 4.81 (36.6)%
share(cents)
Weighted average shares in issue 206,399 206,399
(`000)
Shares in issue (`000) 206,459 206,459
Notes:
1. The pro forma effect of the acquisition on the company`s earnings per
share, headline earnings per share and net asset value per share as
published in the interim results is not significant and is therefore not
shown.
2. Net tangible asset value ("NTAV") per share in the "Before" column is as
published in the interim results.
3. NTAV per share in the "After" column is based on the assumption that the
transaction was effective 31 December 2007.
4. The entire purchase consideration is in respect of intangible assets,
specifically the franchise agreement entered into with Vodacom in respect
of Vodashop Hatfield and goodwill. Due to the nature of the franchised
Vodacom retail outlets, there are no tangible assets to be acquired in
terms of the transaction.
25 July 2008
Designated Advisor
Java Capital (Proprietary) Limited
Date: 25/07/2008 11:38:01 Produced by the JSE SENS Department.
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