| Mon 12 Feb 2001, 0:00 | | Yabeng - Cautionary Announcement |
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Yabeng Investment Holding Company Limited
(Registration No. 1983/070126/06)
("Yabeng" or "the company")
Cautionary Announcement
Proposed payment to shareholders and disposal of share investments
Proposed payment to shareholders
Shareholders are advised that the Yabeng Board of Directors has decided,
subject to the approval of the Yabeng shareholders in general meeting, to
dispose of the company's holdings in South African Breweries plc, Primedia
Limited and Sun International (South Africa) Limited, and to pay the proceeds
to shareholders by way of a reduction in the company's share premium account
after first settling the company's debts and retaining sufficient working
capital to enable the company to continue business.
Disposal of shares
In preparation for this, Yabeng has to date disposed of listed share
investments for a total consideration of R26 793 593. The net gain on disposal
is R9 043 183.
Yabeng has disposed of the following shares on the JSE Securities Exchange
South Africa ("the JSE"):
* 365 000 shares in South African Breweries plc for a total cash consideration
of R20 688 792 in February 2001.
* 1 000 000 combined ordinary units in Primedia Limited for a total cash
consideration of R6 029 309 in November 2000.
* 56 000 shares in Bonatla Property Holdings Limited and 71 400 shares in
Metropolis Transactive Holdings Limited for a total cash consideration of R76
492, mainly in January 2001.
After the above disposals, Yabeng's portfolio of listed shares is:
15 167 473 ordinary shares in Bonatla Property Holdings Limited
1 150 000 combined ordinary units in Primedia Limited
530 657 ordinary shares in South African Breweries plc
8 900 000 ordinary shares in Sun International (South Africa) Limited.
The total disposal proceeds of R26 793 593 are being applied as follows:
* R6 million is being used to repay the company's short term bank loan in full.
* R3 million has been placed on deposit to meet the company's estimated
remaining liabilities arising out of guarantees given on behalf of Fabvleis
(Proprietary) Limited.
* the remaining R17,8 million is being placed on deposit with the intention of
paying the major portion of this amount to shareholders after retaining
sufficient working capital for the company.
Circular to shareholders
In terms of the JSE Listings Requirements a circular regarding the disposal of
the South African Breweries plc shares will be dispatched to shareholders
within 28 days. The circular will, inter alia, call a general meeting of the
company to consider and, if deemed fit, approve the proposed disposal of the
company's remaining shareholdings in South African Breweries plc and Sun
International (South Africa) Limited and the proposed payment to shareholders.
Should the company's remaining shareholdings in South African Breweries plc,
Sun International (South Africa) Limited and Primedia Limited be disposed of at
prices approximating those at which they are currently trading on the JSE, it
is estimated that the payment to shareholders will total approximately 100
cents per share. The anticipated payment to shareholders as a consequence of
these sales, may be made in tranches as shares are sold.
Financial effects
Assuming that the disposals made to date and set out above had all taken place
on 1 March 2000 and that the total consideration of R26 793 593 had been placed
on deposit the same day at 10,5% pa, it is estimated that:
* the loss per share of 9,9 cents reported in Yabeng's unaudited interim
financial statements for the half year ended 31 August 2000 would have changed
to earnings per share of 4,2 cents, and the headline earnings per share
reported of 1,0 cents would have increased to 2,1 cents per share.
* the book net asset value per share at 31 August 2000 per the unaudited
interim financial statements for the half year ended 31 August 2000 of 207,4
cents per share would have increased to 221,5 cents per share.
As regards the book net asset value of the company, shareholders are reminded
that, as stated in Yabeng's Prospects in the unaudited interim financial
statements, the Board of directors is considering writing off the group's
intangible assets of R6,5 million in full and making a provision against
Yabeng's investment in Bonatla Property Holdings Limited.
Cautionary to shareholders
The proposed payment to shareholders and disposal of the share investments may
have a material effect on the price of the company's securities. Accordingly
shareholders are advised to exercise caution when dealing in the company's
securities.
12 February 2001
Sponsoring broker
PLJ Financial Services Limited
