| Tue 1 Jun 2010, 17:10 | | SEP - Sephaku Holdings Limited - Heads of agreement signed with Dangote |
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SEP
SEP
SEP - Sephaku Holdings Limited - Heads of agreement signed with Dangote
Industries Limited ("Dangote") and further cautionary
Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459
("Sephaku Holdings" or "the company")
Heads of agreement signed with Dangote Industries Limited ("Dangote") and
further cautionary
1 Introduction
Shareholders are referred to the cautionary announcements dated 20 November
2009, 7 January 2010, 15 March 2010 and 30 April 2010 and to the announcement
dated 1 February 2010 which included information relating to the funding of the
cement project held by the company`s 80.2%-held subsidiary, Sephaku Cement (Pty)
Limited ("Sephaku Cement") ("the Cement Project").
2 Agreement with Dangote
The board is pleased to announce that a heads of agreement has been signed with
Dangote in relation to the funding of the Cement Project ("the Dangote
agreement")
Dangote is one of Nigeria`s largest manufacturing conglomerates with interests
in cement, sugar, salt and flour. Dangote, who currently holds a 19.8% interest
in Sephaku Cement, will be the the largest producer of cement in sub-Saharan
Africa by 2011.
2.1 Equity funding
In terms of the Dangote agreement and subject to, inter alia, shareholder
approval and the approval of the JSE Limited and any other requisite regulatory
bodies, Sephaku Cement will undertake an issue of additional shares to Dangote
in order to raise R779 million ("the Dangote issue"). This will result in
Dangote holding a 64% interest in Sephaku Cement. The implementation of the
Dangote issue will provide the entire equity requirements for the Cement
Project.
2.2 Debt funding
In terms of the Dangote agreement, Dangote has also agreed to:
* provide the necessary guarantees required for Sephaku Cement to secure the
debt funding required for the Cement Project;
* fund any overruns on the Cement Project with a loan on commercial terms up
to an amount of R265 million; and
* fund Sephaku Cement`s limestone exploration programme relating to its
assets in the Western Cape and Limpopo Province with a loan on commercial
terms up to an amount of R35 million.
3 Further cautionary
Further announcements providing additional details relating to the funding for
the Cement Project, including the relevant financial effects, will be released
as soon as possible. Until such time, shareholders should continue to exercise
caution when dealing in their Sephaku Holdings shares.
Pretoria
1 June 2010
Sponsor
QuestCo Sponsors (Pty) Limited
Corporate advisor to Sephaku Cement
Capital Hill
Date: 01/06/2010 17:10:02 Produced by the JSE SENS Department.
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