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VUN
VUN
VUN - Vunani Limited - Disposal by Vunani of its shareholding in BSI Steel
Limited ("BSI")
VUNANI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/020641/06)
JSE code: VUN
ISIN: ZAE000110359
("Vunani or the company")
DISPOSAL BY VUNANI OF ITS SHAREHOLDING IN BSI STEEL LIMITED ("BSI")
1. INTRODUCTION
In October 2007 Vunani, through its wholly owned subsidiary Vunani
Capital (Proprietary) Limited, acquired 50 million shares in BSI. Shortly
after this acquisition BSI listed on the JSE`s Alternative Exchange
(AltX). BSI supplies steel products in South Africa and a number of
other southern African markets.
2. DETAILS OF THE TRANSACTION
On 11 February 2011 Vunani disposed of its entire shareholding in BSI at
a price of 70 cents per share to Basfour 2052 CC for a total cash
consideration of R34 999 858 ("the disposal"). The price of 70 cents per
share was the ruling market price on 11 February 2011. There are no
conditions precedent and no other significant terms of the agreement.
3. RATIONALE FOR THE DISPOSAL AND APPLICATION OF PROCEEDS
The proceeds from the disposal of the investment have been utilised to
reduce debt.
4. EFFECTIVE DATE
The disposal is expected to settle on 18 February 2011.
5. FINANCIAL EFFECTS OF THE DISPOSAL
Set out below are the pro forma financial effects of the disposal on the
unaudited interim results published by Vunani in respect of the six
months ended 30 June 2010. The pro forma financial effects are the
responsibility of the directors of Vunani and have been prepared for
illustrative purposes only, to provide information on how the disposal
would have affected the previously published interim financial results
and because of their nature may not fairly present Vunani`s financial
position, changes in equity and results of operations.
Before After Change
Cents Cents %
Loss and diluted (2.5) (2.2) 12%
loss per share
Headline and (2.5) (2.2) 12%
diluted headline
loss per share
Net asset value 5.2 5.3 2%
per share
Net tangible asset 3.7 3.8 3%
value per share
Notes:
1. The "Before" column presents Vunani`s unaudited interim results for
the 6 month period ended 30 June 2010 prior to the disposal.
2. The "After" column indicates the pro forma results for Vunani for
the 6 month period ended 30 June 2010 after the disposal.
3. For the purpose of calculating earnings per share (basic and
diluted) and headline earnings per share (basic and diluted), the
transactions took place on 1 January 2010.
4. For the purpose of calculating net asset value and net tangible
asset value per share, the disposal took place on 30 June 2010.
5. At 30 June 2010, the net assets, being the 50 million BSI shares,
subject to the disposal were valued at R31.5m.
6. During the six month period ended 30 June 2010 no dividends were
received from the investment and a fair value adjustment of R1.5m
was recognised in the statement of comprehensive income.
7. It has been assumed that the proceeds on the disposal of the asset
have been applied to reduce debt, which would have resulted in an
interest saving of R2.8m for the period ended 30 June 2010.
6. CLASSIFICATION OF THE DISPOSAL
The disposal is classified as a Category 2 transaction in terms of the
Listings Requirements of the JSE Limited.
Sandton
16 February 2011
Independent Designated Adviser
Grindrod Bank Limited
Date: 16/02/2011 12:29:01 Produced by the JSE SENS Department.
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