| Tue 20 Mar 2012, 17:00 | | DIA/DIB - Dipula - Financial effects relating to t |
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DIA DIB
DIF
DIA/DIB - Dipula - Financial effects relating to the acquisition of Bochum and
Blouberg Plaza and Nquthu Plaza and withdrawal of cautionary
DIPULA INCOME FUND LIMITED
(Incorporated in the Republic of South Africa
(Registration number 2005/013963/06)
JSE code for A-linked units: DIA
ISIN for A-linked units: ZAE000158317
JSE code for B-linked units: DIB
ISIN for B-linked units: ZAE000158325
("Dipula" or "the company")
FINANCIAL EFFECTS RELATING TO THE ACQUISITION OF BOCHUM AND BLOUBERG PLAZA AND
NQUTHU PLAZA AND WITHDRAWAL OF CAUTIONARY
INTRODUCTION
Linked unitholders are referred to the announcement released on SENS on 20
December 2011 in which it was announced that Dipula had concluded agreements
for the acquisition of Bochum and Blouberg Plaza and Nquthu Plaza ("the
acquisition")for R247.8 million.
The purpose of this announcement is to present the financial effects of the
acquisition.
UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITION
The table below sets out the unaudited pro forma financial effects of the
acquisition based on Dipula`s audited annual results for the year ended 31
August 2011. These financial effects are the responsibility of the directors
of Dipula and they have been prepared for illustrative purposes only, in order
to provide information about the results of Dipula only, assuming that the
acquisition had been implemented on 1 September 2010 for purposes of statement
of comprehensive income.
Due to their nature, the unaudited pro forma financial effects may not fairly
present Dipula`s results subsequent to the acquisition. This is particularly
so, having regard to the fact that Dipula`s audited annual results for the
year ended 31 August 2011 only contains one month of the company`s results
post Dipula`s merger with Mergence Africa Property Fund. The unaudited pro
forma financial effects have not been reviewed or reported on by independent
reporting accountants.
The unaudited pro forma financial effects have been prepared in accordance
with the accounting policies of Dipula that were used in the preparation of
the annual results for the year ended 31 August 2011.
The financial information relating to the acquisition has been extracted from
management accounts for the 12 month period to 31 August 2011. The management
of Dipula are satisfied with the quality of the information contained in these
management accounts.
The effect of the acquisition on Dipula`s net asset value is immaterial and
therefore has not been disclosed.
The table below reflects the unaudited pro forma financial effects of the
acquisition on loss and headline loss per linked unit:
Before1 After Change
(%)
Basic loss per A- (560,60) (295,47) 47.3%
linked unit (cents)
Basic loss per B- (577,66) (310,90) 46.2%
linked unit (cents)
Headline loss per A- (595,26) (315,25) 47.0%
linked unit (cents)
Headline loss per B- (612,32) (330,68) 46.0%
linked unit (cents)
Notes and assumptions:
1. The figures set out in the "Before" column above have been
extracted, without adjustment, from the audited annual results for
the year ended 31 August 2011.
2. The acquisition is assumed to have been implemented on 1 September
2010 for earnings and headline earnings per linked unit purposes.
3. The purchase consideration is to be funded through R211.1 million of
new debt facilities while the balance will be settled through the
issue of Dipula A and B linked units.
4. Transaction costs are assumed to be approximately R4 million.
WITHDRAWAL OF CAUTIONARY
Dipula linked unitholders are referred to the cautionary announcement dated 20
December 2011 and are advised that following the release of the financial
effects of the acquisition, caution is no longer required to be exercised by
linked unitholders when dealing in their linked units.
20 March 2012
Corporate advisor and sponsor
Java Capital
Date: 20/03/2012 16:52:01 Produced by the JSE SENS Department.
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