| Thu 5 Nov 2009, 11:30 | | SKW - Skinwell Holdings - Disposal of two company-owned beauty centres in the |
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SKW
SKW
SKW - Skinwell Holdings - Disposal of two company-owned beauty centres in the
Western Cape as going concerns to Wessel Johannes De Wet
SKINWELL HOLDINGS LIMITED
(formerly Placecol Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2003/025374/06)
JSE code: SKW
ISIN: ZAE000135893
("Skinwell" or "the company")
DISPOSAL OF TWO COMPANY-OWNED BEAUTY CENTRES IN THE WESTERN CAPE AS GOING
CONCERNS TO WESSEL JOHANNES DE WET
1. INTRODUCTION
Shareholders are advised that an agreement has been reached between Placecol
Beauty Centre Franchise (Proprietary) Limited, a wholly owned subsidiary of
Placecol Cosmetics (Pty) Limited ("Cosmetics"), and Wessel Johannes de Wet ("De
Wet"), in terms of which De Wet will purchase two company-owned Placecol Beauty
Centres in the Western Cape, as going concerns, for an amount of R1 100 000
("the transaction").
2. BACKGROUND INFORMATION
Cosmetics carries on the business of a marketer, distributor, retailer and
provider of skin and health care products and services and is a franchisor of
the Placecol and DNB brand beauty products and services and a trainer of beauty
therapists and franchisees.
3. RATIONALE FOR THE DISPOSAL
As previously announced the Board of Skinwell has decided to focus on the
company`s core activities, i.e. franchisor, retailer and service provider of its
own branded products. The Skinwell group will, over time, dispose of all its
company-owned Beauty Centres to successful franchisees.
4. DISPOSAL CONSIDERATION
The disposal consideration is payable in cash on or before Friday, 20 November
2009.
5. EFFECTIVE DATE
The transaction will become effective on 1 November 2009.
6. SUSPENSIVE CONDITIONS
There are no outstanding suspensive conditions to the transaction.
7. FINANCIAL EFFECTS OF THE DISPOSAL
No financial effects are presented as they are not significant, being below 3%.
8. APPLICATION OF THE PROCEEDS OF THE DISPOSAL
The proceeds of the disposal will be employed towards the ongoing funding of the
capital requirements of the company and the growth of its brands and core
operations.
9. CLASSIFICATION OF THE TRANSACTION
De Wet, previously a director of Skinwell, is a related party in terms of
paragraph 10.1(b)(ii) of the JSE Limited Listings Requirements ("Listings
Requirements"), however, in terms of paragraph 21.11(a) of the Listings
Requirements of the JSE Limited the transaction is not regarded as a "related
party transaction" due to the size thereof.
Midrand
5 November 2009
Lead Designated Adviser
Grindrod Bank Limited
Corporate Adviser and Designated Adviser
Vunani Corporate Finance
Date: 05/11/2009 11:30:02 Produced by the JSE SENS Department.
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