| Thu 28 Aug 2008, 14:51 | | WES - Wesco - Announcement to shareholders regarding the disposal of Wesco House |
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WES
WES
WES - Wesco - Announcement to shareholders regarding the disposal of Wesco House
(Proprietary) Limited
Wesco Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/005871/06)
Share code: WES ISIN: ZAE000007928
("Wesco" or "the company")
ANNOUNCEMENT TO SHAREHOLDERS REGARDING THE DISPOSAL OF WESCO HOUSE (PROPRIETARY)
LIMITED
("Wesco House")
1. Introduction
The board of directors of Wesco wishes to advise shareholders that the company
has reached agreement in terms of which it will dispose of its wholly-owned
subsidiary, Wesco House (the sole asset of which is the property known as Wesco
House, located at 10 Anerley Road, Parktown, Johannesburg), to South African
Trust and Finance Company (Proprietary) Limited, a company controlled by the
Wessels family ("the purchaser" and "the disposal"), full details of which are
contained in this announcement.
2. Rationale for the disposal
The disposal by Wesco of its 25% interest in Toyota South Africa (Proprietary)
Limited has resulted in Wesco being classified as a "cash company" with its
only remaining material asset being the investment in Wesco House.
The net proceeds of the disposal are included in the dividend payable by Wesco
on 8 September 2008.
3. Details of the disposal
Wesco will dispose of Wesco House with effect from 28 August 2008, for an
amount of R6.284 million, payable in cash against delivery of the relevant
documents of title to the purchaser. The purchase consideration was determined
by reference to a valuation of the property by CB Richard Ellis, Registered
Property Valuers, a copy of which valuation is available for inspection at the
registered office of the company.
4. Related party transaction
The disposal is classified as a small related party transaction in terms of the
Listings Requirements of the JSE Limited ("the JSE") and, accordingly, requires
confirmation from an independent professional expert ("the IPE") that the
terms of the disposal are fair as far as the shareholders of the company are
concerned. Charles Orbach & Company Corporate Finance (Proprietary) Limited has
been appointed as the IPE and has provided the JSE with written confirmation
to the above effect. Its report will lie for inspection at the registered
office of Wesco for a period of 28 days from the date of this announcement.
5. Condition precedent
The disposal is subject only to delivery of the relevant documents of title in
respect of Wesco House to the purchaser.
6. Financial effects of the disposal
The financial effects of the disposal are not significant.
By order of the board
Johannesburg
28 August 2008
Corporate advisor and sponsor
ARCAY MOELA
Arcay Moela Sponsors (Proprietary Limited
(Registration number 2006/033725/07)
Attorneys
Fluxmans Attorneys
Independent professional expert
CHARLES ORBACH & COMPANY
Corporate Finance (Proprietary) Limited
Date: 28/08/2008 14:51:01 Produced by the JSE SENS Department.
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