BDM - Buildmax Limited - Disposal of Wholly-Owned subsidiary
BDM
BDM
BDM - Buildmax Limited - Disposal of Wholly-Owned subsidiary
BUILDMAX LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1995/012209/06)
Share Code: BDM
ISIN Code: ZAE000011250
("Buildmax" or "the Group")
DISPOSAL OF WHOLLY-OWNED SUBSIDIARY
Buildmax is pleased to announce that it has reached an agreement with Mr G. Rees
("the Purchasers"), a non-related party to the Group, in terms of which the
Purchaser will acquire all the shares in and claims against Buildmax Industries
(Proprietary) Limited ("Buildmax Industries"), a wholly-owned subsidiary of
Buildmax ("the Disposal"), from Buildmax, with effect from 31 January 2012.
This Disposal is in line with the board of directors` ("the Board") strategy of
consolidation, strategic repositioning and restructuring of the Group`s
activities and to focus on transforming the Group into an opencast mining supply
chain services and bulk civils earth works company. Buildmax Industries is a
rainwater goods manufacturer in Germiston which has been unable to deliver
sustainable positive returns.
Buildmax has disposed of its shares in and claims against Buildmax Industries
for a total purchase consideration of R1. In addition, Buildmax Industries has
an outstanding shareholder loan account from Buildmax amounting to R4 million
("the Loan Account"). R2 million of the Loan Account was settled by 31 January
2012, with the balance plus accrued interest ("Outstanding Balance") due to be
settled on or before 20 November 2013. The Outstanding Balance is secured by the
shares in Buildmax Industries. The Disposal is not categorized in terms of the
JSE Listing Requirements and, consequently, the announcement of the Disposal is
a voluntary announcement made by Buildmax.
This Disposal will enable management to focus its attention on Buildmax`s core
business.
17 February 2012
Sponsor
Java Capital
Date: 17/02/2012 12:50:27 Produced by the JSE SENS Department.
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