| Fri 9 Mar 2012, 16:12 | | BDM - Buildmax Limited - Disposal of another wholly-owned subsidiary |
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BDM
BDM
BDM - Buildmax Limited - Disposal of another 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 ANOTHER WHOLLY-OWNED SUBSIDIARY
The Board of Directors of Buildmax is pleased to announce that the Group has
successfully realised its strategic intent of disposing all its Construction
Manufacturing Businesses. An agreement was reached with Mr BM McLaughlin ("the
Purchaser"), a non-related party to the Group, in terms of which the Purchaser
will acquire all the shares in and claims against Cast Industries (Proprietary)
Limited ("Cast Industries"), a wholly-owned subsidiary of Buildmax ("the
Disposal"), from Buildmax, with effect from 9 March 2012. Cast Industries is a
manufacturer of concrete paving blocks and roadside kerbing based in
Olifantsfontein which has been unable to deliver sustainable positive returns.
Buildmax has disposed of its shares in and claims against Cast Industries for a
total purchase consideration of R1. In addition, Cast Industries has an
outstanding shareholder loan account from Buildmax amounting to R14 million
("the Loan Account"). R2 million of the Loan Account was settled on 9 March
2012, a further R1 million will be settled by 31 May 2012 and the balance plus
accrued interest ("Outstanding Balance") will be settled in monthly installments
over the next 48 months, with a discount of R2 million if the outstanding
balance is settled by 31 March 2013. The Outstanding Balance is secured by a
first ranking general notarial bond over the assets of Cast Industries. The
Disposal is not categorized in terms of the JSE Listing Requirements and,
consequently, this announcement of the Disposal is a voluntary announcement made
by Buildmax.
This disposal is in line with Buildmax`s communicated intent as was set out in
the commentary to Buildmax`s interim results announcement. The consequence of
this Disposal and the previous disposals announced on 2 and 17 February 2012 on
SENS is that the Group and management can now focus all their attention on
Buildmax`s growth ambitions by leveraging the Group`s systems, assets and
intellectual capital within the Mining Services & Quarries Divisions to grow
Buildmax both organically and acquisitively.
9 March 2012
Sponsor
QuestCo (Pty) Limited
Date: 09/03/2012 16:12:01 Produced by the JSE SENS Department.
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