MVG/MVGP - Mvelaphanda Group Limited - Proposed Acquisition by Avusa
MVG MVGP
MVG
MVG/MVGP - Mvelaphanda Group Limited - Proposed Acquisition by Avusa
Mvelaphanda Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/004153/06)
Ordinary share code: MVG
Ordinary share ISIN: ZAE000060737
Preference share code: MVGP
Preference share ISIN: ZAE000073540
("the company" or "Mvela Group")
PROPOSED ACQUISITION BY AVUSA
Over the past week, the company has undertaken consultation with selected
shareholders of Avusa Limited ("Avusa") and shareholders of UHC Communications
(Pty) Limited ("UHC") around the proposed acquisition of Universal Print Group
and Hirt & Carter by Avusa (the "Transaction").
Following recent further discussion and engagement with the shareholders and
management of UHC, Mvela Group remains of the opinion that Avusa is entering
into the Transaction at an inappropriate time in its business cycle. This, in
effect, undervalues Avusa. However following these recent discussions, we have
been persuaded that the Transaction will most likely be value neutral to Avusa`s
shareholders should a number of contemplated initiatives be implemented.
On Monday, 11 October 2010, Mvela Group representatives met with UHC
shareholders where both parties concluded that they have a common vision and
strategy for their interest in Avusa which includes Avusa being a platform for
consolidation in the media environment.
Mvela deems it vital that Avusa have a strong and united board in order to
achieve its own stated objectives of being a leading media house in Africa.
Following these discussions and in the interests of Avusa, Mvela Group has
decided not to oppose the Transaction. In the event that the majority of the
shareholders of Avusa vote in favour of the Transaction, we will constructively
engage with and support Avusa and UHC`s management in order to ensure that
maximum value is extracted as a result of the Transaction.
Johannesburg
12 October 2010
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 12/10/2010 09:35:01 Produced by the JSE SENS Department.
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