| Fri 17 Apr 2009, 15:35 | | HVL - Highveld / Umnotho weSizwe - Correction to Joint Announcement Regarding |
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HVL
HVL
HVL - Highveld / Umnotho weSizwe - Correction to Joint Announcement Regarding
a Black Economic Empowerment Transaction In Respect of the Mapochs Mine
Highveld Steel and Vanadium Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1960/001900/06)
JSE share code: HVL
ISIN: ZAE000003422
("Highveld" or "the Corporation")
Umnotho weSizwe Group (Proprietary) Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/014260/07)
("Umnotho weSizwe")
CORRECTION TO JOINT ANNOUNCEMENT REGARDING A BLACK ECONOMIC EMPOWERMENT
TRANSACTION IN RESPECT OF THE MAPOCHS MINE
INTRODUCTION
Shareholders are referred to the announcement dated 9 April 2009,
wherein the terms of a 26% Black Economic Empowerment transaction, in relation
to the Mapochs Mine ("BEE transaction"), were announced.
The pro forma financial effects were incorrectly stated and the revised pro
forma financial effects are presented below.
REVISED PRO FORMA FINANCIAL EFFECTS
The table below sets out the revised unaudited pro forma financial effects of
the BEE transaction on the Corporation`s earnings per share ("EPS"), headline
earnings per share ("HEPS"), net asset value per share ("NAVPS") and tangible
net asset value per share ("TNAVPS") based on the audited results for the
financial year ended 31 December 2008. The pro forma financial effects have
been prepared for illustrative purposes only, and, because of their nature,
may not give a true reflection of Highveld`s financial position, changes in
equity, results in operations or cash flows. The directors of Highveld are
responsible for the pro forma financial effects.
Before the After the Percentage After the Percentage
implementation implementation change implementation change
of the ore of the ore % of the BEE %
supply agree- supply agree- transaction
ment and the ment (cents)
implementation (cents)
of the BEE
transaction
(cents)
EPS 2,561 2,776 8.40 2,776 0
HEPS 2,650 2,865 8.11 2,915 1.75
NAVPS 2,866 3,081 7.50 3,024 (1.85)
TNAVPS 5,382 5,597 4.00 5,629 0.57
Notes:
The pro forma financial effects were calculated based on 99 150 098 weighted
average ordinary shares in issue as at 31 December 2008.
EPS and HEPS impact assumes an effective date of 1 January 2008, while NAV and
TNAV are stated as at 31 December 2008.
The pro forma financial effects of the increased revenue as a result of sales
of ore were calculated in accordance with new supply agreement prices.
17 April 2009
eMalahleni
Investment bank, transaction advisor and transaction sponsor to Highveld
Standard Bank
Attorneys to Highveld
Webber Wentzel
Sponsor to Highveld
JP Morgan
Attorneys to Umnotho
DM5 Inc
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Date: 17/04/2009 15:35:02 Produced by the JSE SENS Department.
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