| Thu 31 Jul 2008, 16:30 | | CRG - Cargo Carriers Limited - Acquisition |
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CRG
CRG
CRG - Cargo Carriers Limited - Acquisition
CARGO CARRIERS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1959/003254/06)
("Cargo" or "the company")
ISIN Code: ZAE 000077335 Share code: CRG
ACQUISITION BY Cargo of Erf numbers 297 Observatory; 298 Observatory; 65
Observatory; PTN 1 of Erf 65, Mountainview and PTN 1 of Erf 142, Fairwood
collectively known as 11 A Grace Road, Mountainview, Observatory.
1. INTRODUCTION
The Board of directors of Cargo are pleased to announce the signing of an
agreement dated 30 July 2008 with Alliance Group (Pty) Limited
("Auctioneer"), in terms of which the company acquired, at a public
auction, an immovable property situated at 11 A Grace Road ("the
acquisition") with immediate effect for a purchase consideration of R 20
million. The vendors are not related parties to Cargo.
2. BACKGROUND INFORMATION
The transaction has been concluded at commercial values on a relative basis
and there is no discount or debt funding behind the structure.
3. RATIONALE FOR THE TRANSACTION
Cargo Carriers Limited intends to use the acquisition for business purposes
as a result of its disposal of its existing premises.
4. PURCHASE CONSIDERATION
The purchase price payable will be R20 million, settled as follows:
* A deposit of 5% (FIVE PERCENT) of the purchase price to the auctioneer
by the company immediately on the fall of the hammer, which amount the
company authorises the auctioneer to pay over to the seller;
* The balance of the purchase price shall be paid in cash and secured,
to the satisfaction of the seller`s attorneys, by a written guarantee
from a registered financial institution, payable free of exchange,
against registration of transfer of the property into the company`s
name. The purchaser may elect to secure the balance of the purchase
price by payment in cash to the seller`s attorneys, who shall hold
same in trust, pending registration of transfer into the name of the
company; and
* The purchase price is exclusive of VAT. In the event of VAT being
payable on the purchase price as a result of the sale, such VAT shall
be paid by the company to the seller`s attorneys immediately on demand
therefore.
5. EFFECTIVE DATE
The transaction will become effective subject to the compliance with all
regulatory obligations to the extent necessary to effect the transaction.
6. FINANCIAL EFFECTS
The unaudited pro forma financial effects, for which the directors are
responsible, are provided for illustrative purposes only and reflect the
effect of the transaction on the Group`s results for the year ended 29
February 2008. Because of their nature, the unaudited pro forma financial
effects may not give a fair presentation of the Group`s financial position
and performance. The unaudited pro forma financial effects have been
compiled from the audited consolidated financial statements for the year
ended 29 February 2008 and are presented in a manner consistent with the
format and accounting policies adopted by the Group and have been adjusted
as described in the notes below:
Audited Pro-Forma %
Before the Unaudited Change
transaction After the
transaction
Earnings per share 206.3 199.7 3.3%
(cents)
Headline earnings per 69.7 63.1 10.5%
share (cents)
Net asset value per 1463 1457 0.4%
share (cents)
Net tangible asset value 1463 1457 0.4%
per share (cents)
Weighted average number 20 000 20 000 0.0%
of shares in issue
(000`s)
Shares in issue at year 20 000 20 000 0.0%
end (000`s)
Notes:
1 The "Audited Before the transaction" column reflects the audited results of
the Group for the year ended 29 February 2008.
2 The "Pro-Forma Unaudited After the transaction" column reflects what the
results would have been had the transaction been effective for the full
financial year. This was calculated by annualising the actual costs to the
Group for the period 1 March 2007 to 29 February 2008 to reflect a full 12
month contribution.
3 Net asset and tangible net asset value calculations were completed assuming
the transaction was concluded at the balance sheet date of 29 February
2008.
7 DOCUMENTATION
Shareholders approval for the acquisition is not required. Accordingly, a
circular will not be despatched to shareholders.
Johannesburg
31 July 2008
Sponsors
Arcay Moela Sponsors (Pty) Ltd
Date: 31/07/2008 16:30:02 Produced by the JSE SENS Department.
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