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IQG
IQG
IQG - IQuad Group - Acquisition of remaining 26% interest in export Credit
Exchange (Proprietary) Limited
IQuad Group Limited
Incorporated in the Republic of South Africa
(Registration Number 2004/025177/06)
Share Code: IQG ISIN: ZAE000101622
("IQuad" or "the Company")
ACQUISITION OF REMAINING 26% INTEREST IN EXPORT CREDIT EXCHANGE
(PROPRIETARY) LIMITED ("ECE")
1. INTRODUCTION
Shareholders are hereby advised that IQuad has made an offer to acquire the
remaining 26% interest in ECE and that the offer has been accepted
("Transaction"). Subsequent to the Transaction being concluded, ECE will
become a wholly owned subsidiary of IQuad.
2. BUSINESS OF ECE
ECE is an internet based market that facilitates the trading of Import
Rebate Credit Certificates ("IRCC`s") issued under the Motor Industry
Development Programme ("MIDP"). The MIDP will be replaced by the Automotive
Production and Development Programme ("APDP")in 2013. All current
indications are that the APDP Duty Credit Certificates will be fully
tradable instruments, similar to the current IRCC`s. ECE will continue to
focus on assisting their clients to maximise benefits under the MIDP
incentive programme and will play a leading role in the development of the
APDP market.
3. RELATED PARTY TRANSACTION
The seller is the managing director of ECE, a subsidiary of IQuad, and
therefore the Transaction is a related party transaction. As the
categorisation of the transaction is less than 10% of IQuad`s market
capitalisation, no further action is required by IQuad or shareholders in
order to implement same.
4. RATIONALE FOR THE TRANSACTION
IQuad has had good returns from its original 74% investment in ECE. An
opportunity exists for ECE to become an expert on the APDP and to capture a
large portion of the market when the programme is launched by Government.
5. THE EFFECTIVE DATE OF THE TRANSACTION
The effective date of the Transaction will be 1 March 2010.
6. CONSIDERATION
The consideration payable by IQuad is R2 324 000 (two million three hundred
and twenty four thousand rand) and will be settled in cash.
7. OTHER SIGNIFICANT TERMS OF THE TRANSACTION
Save for as stated in this announcement, there are no other significant
terms of the Transaction.
8. CONDITION PRECEDENT
The Transaction is not subject to any conditions precedent.
9. PRO FORMA FINANCIAL EFFECTS
The pro forma financial effects of the Transaction on the Company`s earnings
per share, headline earnings per share, net asset value per share and
tangible net asset value per share are not significant and are less than 3%
and therefore have not been disclosed
17 September 2010
Port Elizabeth
Designated Adviser
Questco Sponsors (Pty) Limited
Corporate Adviser
PSG Capital (Pty) Limited
Date: 17/09/2010 16:19:01 Produced by the JSE SENS Department.
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