| Fri 1 Aug 2008, 11:11 | | CEL - Celcom Group Limited - Disposal By Celcom Group Of Vodashop Rivonia |
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CEL
CEL
CEL - Celcom Group Limited - Disposal By Celcom Group Of Vodashop Rivonia
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")
DISPOSAL BY CELCOM GROUP OF VODASHOP RIVONIA
Shareholders are advised that Celcom Group has concluded an agreement for the
sale of the franchised Vodacom retail outlet known as "Vodashop Rivonia" as a
going concern.
The Vodashop Rivonia business has been sold by Celcom Group to HiCell Cellular
(Gauteng) (Proprietary) Limited (owned by Mr S A Kok) with effect from 1 August
2008, subject to formal approval for the disposal being received from Vodacom.
The Celcom Group`s subsidiary, V Cellular Stores, currently 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 disposal of Vodashop Rivonia forms part of the restructure of Celcom Group`s
portfolio of Vodashops following the recent acquisition by Celcom Group of the
premier Vodashop Hatfield outlet (announced on 25 July 2008).
The purchase consideration to be received by Celcom Group for Vodashop Rivonia
is R2 300 000, payable to Celcom Group in cash on the effective date. In
addition, the stock-on-hand of the Vodashop Rivonia will be sold to the
purchaser at its book value (approximately R260 000). All proceeds from the
disposal will be applied in settling the purchase price of Vodashop Hatfield.
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 8.67 14.3%
share(cents)
Weighted average shares in issue 206,399 206,399
(`000)
Shares in issue (`000) 206,459 206,459
Notes:
The pro forma effect of the disposal 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.
Net tangible asset value ("NTAV") per share in the "Before" column is as
published in the interim results.
NTAV per share in the "After" column is based on the assumption that the
transaction was effective 31 December 2007.
The entire purchase consideration (excluding the amount to be received in
respect of stock) is in respect of intangible assets, specifically the franchise
agreement entered into with Vodacom in respect of Vodashop Rivonia and goodwill.
Due to the nature of the franchised Vodacom retail outlets, there are no
tangible assets to be disposal in terms of the transaction (other than the
stock).
1 August 2008
Designated Advisor
Java Capital (Proprietary) Limited
Date: 01/08/2008 11:11:02 Produced by the JSE SENS Department.
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