| Tue 29 Sep 2009, 16:28 | | IPL - Imperial - Voluntary announcement regarding the acquisition of a 56% |
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IPL
IPL
IPL - Imperial - Voluntary announcement regarding the acquisition of a 56%
interest in the Midas group and the disposal of the group`s Swedish
dealerships and 35% interest in Flagstone Reinsurance
Imperial Holdings Limited
Registration number: 1946/021048/06
Share code: IPL
ISIN: ZAE000067211
("Imperial" or "the group")
Voluntary announcement regarding the acquisition of a 56% interest in the Midas
group and the disposal of the group`s Swedish dealerships and 35% interest in
Flagstone Reinsurance
The Midas group
Imperial wishes to announce that approval has been obtained from the Competition
Commission to proceed with the proposed acquisition of the Midas group, a
distributor and retailer of branded quality auto parts and accessories.
Conclusion of the transaction is still subject to a due diligence investigation
and final contract negotiations.
The Midas group was founded in 1968 and was listed on the JSE Limited in 1986.
It was de-listed in 2002 following a leveraged buy-out which included existing
management and General Motors South Africa.
The Midas group operates five national chains, namely Midas Parts Centres
(general branded auto parts), Motolek (auto electrical parts), Adco (diesel
parts), CBS (truck clutches & brakes) and Auto Care & Diagnostics (Workshop).
The Midas group operates 394 retail outlets, workshops & fitment centres, either
as owner or franchisor, and employs 1 100 people. The Midas group and Imperial`s
existing auto parts interests had combined revenue of more than R3 billion in
the past 12 month period.
Imperial intends to acquire 56% of the Midas group, with the balance to be held
by management, franchisees and a BEE group.
Swedish dealerships
In addition, Imperial can announce that it has disposed of its four Nissan
passenger vehicle dealerships in Sweden. The businesses were sold to management
as a going concern at their net asset value of approximately R20 million. The
rationale for the disposal is the relatively negligible impact which the
businesses had on the group, and the limited opportunities for growth and
expansion.
Flagstone Reinsurance
Lastly, Imperial has reached agreement, subject to regulatory approval, to
dispose of its remaining 35% shareholding in Flagstone Reinsurance Africa
Limited ("FRA"), previously called Imperial Re, to Flagstone Reinsurance
Holdings Limited (NYSE: FSR) ("Flagstone"). Based on the successful integration
of all aspects of FRA into the Flagstone group and the substantial progress
which was made in terms of business development, Flagstone and Imperial have
decided that it was in the best interest of FRA to accelerate the transition to
full Flagstone ownership.
The disposal of FRA will enable Imperial to release R84 million of capital to
its core industrial and consumer orientated businesses which are more cash
generative than this minority shareholding. The group will continue its healthy
business relationship with FRA.
Company Secretary
RA Venter
Bedfordview
29 September 2009
Independent sponsor to Imperial Holdings
Merrill Lynch South Africa (Pty) Limited
Date: 29/09/2009 16:28:10 Produced by the JSE SENS Department.
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