| Tue 11 Aug 2009, 14:18 | | BRT/BRN - Brimstone Investment Corporation Limited - Brimstone Acquires Outright |
|
BRT BRN
BRT
BRT/BRN - Brimstone Investment Corporation Limited - Brimstone Acquires Outright
Control Of Lion Of Africa Insurance Company
BRIMSTONE INVESTMENT CORPORATION LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1995/010442/06)
("BRIMSTONE")
(ISIN NUMBER: ZAE000015277 SHARE CODE: BRT)
(ISIN NUMBER: ZAE000015285 SHARE CODE: BRN)
BRIMSTONE ACQUIRES OUTRIGHT CONTROL OF LION OF AFRICA INSURANCE COMPANY
11 AUGUST 2009
Cape Town - Following recent discussions with short-term insurer Santam,
Brimstone Investment Corporation and Commlife Holdings have agreed to acquire
all of Santam`s current interests in the Lion of Africa Insurance Company
Limited - interests currently equating to 35% of the current issued shares. The
value of the proposed transaction has not been disclosed.
In terms of the transaction, Brimstone will acquire a further 21% shareholding
of the entire issued shares of Lion of Africa Insurance Company - upping its
original shareholding from an effective 39% of the Lion Group to a controlling
60%. Joint shareholder, Commlife Holdings will increase its shareholding in
Lion from 26% to 40%.
Mustaq Brey, Chief Executive Officer of Brimstone says that the share sale
transaction will significantly enhance Lion`s credentials as a wholly-owned BEE
short-term insurer. "The investment and support given to the Lion of Africa
Insurance Company over the past decade by co-shareholder Santam has been
instrumental in establishing the business and its credentials in the South
African market. The timing of the transaction presents an opportunity for the
company to assume its own independence and move confidently into its next phase
of growth.
Brey says: "Brimstone and Commlife, both Black owned companies, together with
Santam have built another Black company from start up, created wealth and more
than 100 jobs as well as contributed to a transformed Insurance landscape."
"From a Brimstone perspective, the transaction is congruent with the company`s
strategic intent to restructure select assets within its portfolio to facilitate
and enhance shareholder returns," said Brey.
The transaction, which is subject to all regulatory approvals, is effective 30
June 2009.
MA BREY
CHIEF EXECUTIVE OFFICER
Brimstone Investment Corporation Limited
OFFICE: 021 683 1444
MOBILE: 083 679 1138
EMAIL: mbrey@brimstone.co.za
Cape Town
11 August 2009
Sponsor
Nedbank Capital
Date: 11/08/2009 14:18:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
