| Fri 9 Mar 2012, 15:19 | | ABL/ABLP/ BIABL - African Bank Investments Limited - Proposed placing and issue |
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ABL ABLP
ABL BIABL
ABL/ABLP/ BIABL - African Bank Investments Limited - Proposed placing and issue
of a tranche of preference shares
AFRICAN BANK INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
Ordinary share code: ABL ISIN: ZAE000030060
Preference share code: ABLP ISIN: ZAE000065215
("ABIL" or "the Company")
African Bank Limited
(Incorporated in the Republic of South Africa)
(Registration No. 1975/002526/06)
Company code: BIABL
PROPOSED PLACING AND ISSUE OF A TRANCHE OF PREFERENCE SHARES
Introduction
Shareholders are referred to ABIL`s announcement of 27 February 2012 and are
advised that further to this, ABIL has decided to proceed with issuing a further
tranche of variable-rate, perpetual, non-cumulative, non-participating
preference shares to investors for cash by way of a private placement. The
shares will rank on a pari passu basis with, and will form the same class of
shares as, ABIL`s existing listed preference shares resulting in the same
preference dividend cycle as currently applies.
ABIL wishes to raise cost effective permanent share capital as part of a general
capital management programme. It is intended that the net capital raised
through the issue of preference shares will be applied towards the subscription
by ABIL of ordinary shares in its wholly owned subsidiary, African Bank Limited.
Placing of the preference shares
Placements of preference shares will be made by ABSA Capital (a division of ABSA
Bank Limited) and Investec Capital Markets (a division of Investec Bank Limited)
through a joint bookbuilding process, in terms of which investors will be
invited to participate in the proposed issue. Interested investors are requested
to contact the bookbuilders for information on the placement process. The issue
of preference shares will be in accordance with the specific authority granted
by shareholders to ABIL at the general meeting held on 30 March 2011 and subject
to the following limitations:
* Selected investors may not be persons considered to be non-public
shareholders or related parties to the Company in terms of the JSE Limited
Listings Requirements;
* The minimum subscription amount per principal institutional investor will
be R100 000; and
* The minimum subscription amount per principal non-institutional investor
will be R1 000 000.
The issue of preference shares will be subject to and conditional upon the final
approval by ABIL of the terms of any such issue and the approval of the listing
of such preference shares by the JSE.
Pricing and additional information
The new tranche of preference shares will be offered at a clean price of 7614
cents per preference share, which results in an effective yield of 90.63% of
prime. In accordance with the specific authority referred to above, this price
is calculated with reference to the clean 10 day volume weighted average traded
price of the preference shares as at the close of business on 8 March 2012, and
represents a discount of 5% thereon.
The offer period opens on Monday 12 March 2012 and closes on Friday, 16 March
2012 at 17:00, and allotment and settlement will take place on Monday 19th March
2012 and Friday, 23 March 2012 respectively. After including accrued dividends
the issue price for settlement on 23 March will be 7773 cents.
Enquiries may be directed to:
ABIL
Markus Borner
Executive: Balance Sheet Management
(011) 564 7495
Gavin Jones
Executive: Capital and Liability Management
(011) 564 6868
ABSA Capital
Keith Flemmer
Distribution
011 895 5382
Investec Capital Markets
Kenric Owen
Product and Distribution
011 286 9930
Midrand
9 March 2012
Transaction Sponsor
Absa Capital
(the investment banking division of Absa Bank Limited and affiliated with
Barclays Capital)
Issuer CSDP
Absa Capital Investor Services
Debbie Billings/Nicole Andrews
Corporate Actions
011 350 1580/7671
Date: 09/03/2012 15:19:01 Produced by the JSE SENS Department.
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