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CAE
CAE
CAE - Cape Empowerment Trust Limited - Disposal Of Interests In Ambit Management
Services (Pty) Ltd And CII Hotels And Resorts (Pty) Ltd
Cape Empowerment Trust Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/014606/06)
("CET", "the company" or "the group")
Share Code: CAE
ISIN: ZAE000016952
DISPOSAL OF INTERESTS IN AMBIT MANAGEMENT SERVICES (PROPRIETARY) LIMITED ("AMS")
AND CII HOTELS AND RESORTS (PROPRIETARY) LIMITED ("CII")
INTRODUCTION
Shareholders are advised that CET has entered into separate and unrelated
agreements to dispose of:
Its 22% interest in AMS to Absa Bank Limited ("Absa") for a consideration of R22
million paid in cash ("the AMS disposal"); and
Its 51% interest in CII to CII Holdings (Proprietary) Limited ("CII Holdings")
for a consideration of R37 million payable in cash ("the CII disposal").
RATIONALE FOR THE AMS DISPOSAL AND THE CII DISPOSAL
AMS provides asset management services to Ambit Properties Limited ("Ambit").
The AMS disposal follows the realisation of the group`s investment in Ambit as
announced on 12 November 2008.
CII is developing a luxury hotel in Cape Town to be operated by Coral
International. The CII disposal is in line with the recent decision to de-risk
the group`s balance sheet and realises the investment at a reasonable return,
having paid R30 million for it in November 2007.
The AMS disposal and the CII disposal will leave the group in a substantial cash
position with neglible gearing.
TERMS OF THE CII DISPOSAL
The effective date of the transaction is 10 November 2008.
The purchase consideration of R37 million is payable as follows:
R15 million in cash, which has already been received,
R15 million in cash by no later than 31 January 2009, and
The balance, being R7 million, by no later than 31 October 2009.
Any amount not paid on the due date shall attract interest at 2,5% per month.
As security for its payment obligations CII Holdings has pledged to CET a
minimum of 51% of the shares in CII.
PRO FORMA FINANCIAL EFFECTS
The financial effects of the transactions are not material.
CATEGORISATION OF THE TRANSACTION
The transactions are categorised as category 2 transactions for the purposes of
the JSE Listings Requirements.
Cape Town
18 December 2008
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Legal advisors
Cliffe Dekker Hofmeyr Inc
Date: 18/12/2008 14:11:19 Produced by the JSE SENS Department.
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