| Fri 8 Oct 2010, 12:14 | | NCS - Nictus Limited - Acquiring motor dealership through a subsidiary |
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NCS
NCS
NCS - Nictus Limited - Acquiring motor dealership through a subsidiary
8 October 2010
NCS - Nictus Limited - Acquiring motor dealerships through a
subsidiary and withdrawal of cautionary
NICTUS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1981/001858/06)
JSE Share code: NCS
NSX Share code: NCT
ISIN Code NA0009123481
("Nictus" or "the company")
NICTUS ACQUIRED A MOTOR DEALERSHIP THROUGH A SUBSIDIARY (AUAS
MOTORS (PTY) LTD)
1. INTRODUCTION
Nictus wishes to advise shareholders that it has entered into
an agreement (`the Agreement`) with Pupkewitz Motor Holdings
(Proprietary) Limited (`Pupkewitz`) to acquire the General
Motors dealership in Walvisbay for R7,1 million (`the
Acquisition`) as a going concern through Auas Motors (Pty)
Ltd (`Auas`), a 100% held subsidiary.
2. BACKGROUND
The Walvisbay dealership has a branch in Swakopmund that forms part of
the acquisition and provides Auas the right to sell all
General Motors products in these areas. This gives Auas the
opportunity to expand their current activities in the motor
trade and is the distributor of General Motors products in
Namibia.
3. RATIONALE
The Acquisition broadens the Group`s motor vehicles division`s base of
operations. It will therefore provide a higher throughput and
result in economies of scale benefits for Auas. This would
result in improved service to the public in Namibia.
4. EFFECTIVE DATE
The Competition Commission in Namibia still needs to approve the
transaction. The result of the Competition Commission
approval will be published when it is available. All other
conditions precedent has been met, with the effective date of
the Acquisition being 1 October 2010.
5. PURCHASE CONSIDERATION
The purchase consideration of R7.1 million will be discharged in cash
utilising the Group`s internal cash resources.
6. FINANCIAL EFFECTS
Based on the latest unaudited management information provided to
Nictus by Pupkewitz and taking transaction costs into
account, the impact of the Acquisition on the Company`s most
recently published earnings per share, headline earnings per
share, net asset value per share and net tangible asset value
per share, namely for the year ended 31 March 2010, is not
considered to be significant.
7. CATEGORISATION
The Acquisition is categorised as a Category 2 transaction for
purposes of the Listings Requirements of the JSE Limited, as
it constitutes just over 14% of Nictus`s current market
capitalisation, and accordingly does not require shareholder
approval.
8. WITHDRAWAL OF CAUTIONARY
Shareholders are referred to the cautionary announcement dated 23
August 2010, and are advised that since all the terms of the
acquisition, as required per section 9.15 of the JSE Listings
Requirements, have been disclosed, caution is no longer
required to be exercised by shareholders when dealing in
their securities."
Johannesburg
8 October 2010
Sponsor on the JSE : KPMG
Sponsor on the NSX : Namibia Equity Brokers
Date: 08/10/2010 12:14:01 Produced by the JSE SENS Department.
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