| Thu 7 Apr 2011, 9:01 | | BVT - Bidvest share buy-back unlocks significant value for Dinatla BEE |
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BVT
BVT
BVT - Bidvest share buy-back unlocks significant value for Dinatla BEE
partners
The Bidvest Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/021180/06)
Share code: BVT ISIN ZAE000117321
("Bidvest" or "the Company")
Bidvest share buy-back unlocks significant value for Dinatla BEE partners
Bidvest, the JSE-listed services, trading and distribution group, today
(April 7 2011) announced the conclusion of a R1,6 billion share repurchase
agreement with its Dinatla empowerment partners.
The transaction gives Dinatla constituents the certainty of early cash
realisation and facilitates repayment of Dinatla`s funding arrangements well
ahead of settlement date in March 2012.
Since 2003 when the Bidvest-Dinatla relationsip was formed, value in excess
R2 billion has been delivered to the Dinatla stakeholders.
The buy-back involves the purchase of 12 million Bidvest shares from Dinatla
at a net repurchase price of R131.75 per Bidvest ordinary share.
Bidvest chief executive Brian Joffe commented: "The transaction is hugely
positive for all parties and is further evidence of the tremendous success
of our partnership with Dinatla. Wealth mobilisation on this scale has the
power to transform entire communities and drive significant change.
"The share repurchase not only unlocks considerable value for Dinatla, it
means our partner`s remaining equity in Bidvest is totally unencumbered.
Going forward, the buy-back ensures continued value accretion for all
Bidvest shareholders.
"The structure of our empowerment transaction with Dinatla has demonstrated
its resilience across various market cycles and achieved the strategic goals
we set in 2003; namely, significant and sustained gains for empowerment
beneficiaries while creating a catalyst for change capable of transforming
every Bidvest business in the country."
The Dinatla consortium is majority owned by prominent black entrepreneurial
businesses and also comprises broad-based BEE companies spread across all
South Africa`s provinces.
Tania Slabbert noted on behalf of the consortium: "This unique BEE
transaction represents over R2 billion of value realised for Dinatla. The
transaction is remarkable for the scale of the value unlocked and in terms
of the thousands of beneficiaries that will benefit from it.
"We thank Brian Joffe and his executive team for the many years of
commitment to the partnership with Dinatla and for proposing and
facilitating this share buy-back transaction which, subject to various
approvals, will allow Dinatla to settle its debt early and so allow value to
be vested directly in the hands of the constituent BEE beneficiaries."
Bidvest concluded its initial BEE transaction with Dinatla in November 2003.
The consortium acquired 15% of Bidvest (45 million shares). The arrangement
was refinanced three years later when Dinatla reduced its stake to a
residual holding of 26,5 million ordinary Bidvest shares.
A further 12 million shares will now be repurchased by the Group.
The price of R131.75 represents a discount of 11.3% on the 30-day volume
weighted average price of Bidvest to April 5 2011.
The share buy-back is subject to various approvals.
______________________________________________________________
ISSUED ON BEHALF OF: THE BIDVEST GROUP LIMITED
BY: CLEAR DISTINCTION COMMUNICATIONS
BIDVEST CONTACTS: Brian Joffe (Group CE)
Tel: 011 772 8704
David Cleasby ( Group FD)
Tel : 011 772 8706
Mobile: 083 228 1810
DINATLA CONTACT: Tania Slabbert
Tel: 011 341 9900
CONSULTANCY CONTACT: Carol Dundas
Tel: 011 444 0650
Mobile: 083 447 6648
Date: 07/04/2011 09:01:03 Produced by the JSE SENS Department.
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