| Wed 5 Nov 2008, 8:26 | | SKJ - Sekunjalo - BT Partners With Sekunjalo To Stregthen Operations In South |
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SKJ
SKJ
SKJ - Sekunjalo - BT Partners With Sekunjalo To Stregthen Operations In South
Africa And Renewal Of Cautionary Announcement
SEKUNJALO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1996/006093/06)
ISIN: ZAE000017893
Share Code: SKJ
("Sekunjalo" or "the Company")
BT PARTNERS WITH SEKUNJALO TO STREGTHEN OPERATIONS IN SOUTH AFRICA AND RENEWAL
OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Further to the cautionary announcement dated 20 October 2008, shareholders
are advised that Sekunjalo has completed a transaction for the acquisition
of 30% of BT Communications Services South Africa (Pty) Limited ("BTSA")
("the acquisition`). BTSA forms the South African operations of BT Group
plc ("BT"), a company which is listed on the London Stock Exchange.
2. THE ACQUISITION
Rationale
The acquisition offers both parties an opportunity to accelerate their
growth and shows the commitment of BT to the Broad Based Black Economic
Empowerment (B-BBEE) agenda.
Terms of the acquisition
Sekunjalo has purchased a 30% equity stake in the South African operations
of BT. The acquisition is effective immediately but is subject to certain
conditions precedent.
The business of BT
BT is one of the worlds leading providers of communications solutions and
services operating in 170 countries. Its principle activities include the
provision of networked IT services globally; local, national and
international telecommunications services its customers for use at home, at
work and on the move; broadband and internet products and services and
converged fixed / mobile products and services. BT consists principally of
four lines of business: BT Global Services, Openreach, BT retail and BT
Wholesale.
The consideration
Sekunjalo has acquired 30% of BTSA for R27 million in a fully vendor
financed transaction.
Pro forma financial effects of the acquisition
The value of the net assets subject to the transaction is nil and the
profits attributable to those net assets is nil because of the
consideration being fully vendor financed. As a result, the pro forma
financial effects of the acquisition on Sekunjalo`s earnings per share,
headline earnings per share, net asset value per share and net tangible
asset value per share for the period ended 28 February 2008 are not
significant.
3. CONDITIONS PRECEDENT
The implementation of the acquisition is subject to the fulfillment of the
following conditions precedent:
- the approval of the South African Reserve Bank; and
- the execution of other ancillary secretarial items necessary to give -
effect to the acquisition.
4. RENEWAL OF CAUTIONARY ANNOUNCEMENT
As a result of separate ongoing negotiations which, if successfully
concluded, may have a material effect on the price of the Company`s
securities, shareholders are advised to continue exercising caution when
dealing in the Company`s securities until a further announcement is made.
Cape Town
5 November 2008
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 05/11/2008 08:26:01 Produced by the JSE SENS Department.
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