Pasdec Resources SA Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004942/06)
("Pasdec" or "the company")
Acquisition by Pasdec of an additional 47.2 % interest in Femco Mining Motors
(Pty) Ltd
Introduction
KPMG is authorised to announce that Pasdec has acquired an additional 47.2%
interest in Femco Mining Motors (Pty) Ltd ("Femco Mining"), with effect from 2
November 2000, through the capitalisation of the shareholder's loan from the
Pasdec Group into ordinary share capital. As a result of this transaction,
Pasdec's interest in Femco Mining has increased from 49% to 96.2%.
Nature of the business of Femco Mining
Femco Mining designs, develops, manufactures and refurbishes flame proof
electric motors for the mining industry. Voest Alpine, an international
manufacturer of coal mining equipment, has recently awarded Femco Mining global
preferred supplier status.
Rationale for the transaction
A number of initiatives are being pursued in the Pasdec Group, of which,
capacity expansion and the positioning of Femco Mining are of a high priority.
The conversion of the shareholder's loans, amounting to R5.15 million, into
share capital has resulted in a stronger balance sheet and capital base for
Femco Mining, enabling the company to maximise the benefits available from
these initiatives.
Purchase consideration
The purchase consideration was settled by way of capitalising the shareholder's
loan account amounting to R5.15 million.
Financial effects
The table below illustrates the effects of the transaction on the loss per
share and net asset value per share:
Pro forma Pro forma % Increase
Before After (Decrease)
Shares in issue ('000) 55 964 55 964 0
loss per share (cents) (20.72) (22.03) 5.9
Net asset value (cents)
(including subordinated
shareholders loans) 88.69 88.48 (0.2)
The financial effects have been calculated based on the following numbers and
assumptions:
"Before" column:
* The audited preliminary results of Pasdec Group for the year ended 31
December 2000, excluding Femco Mining; and
* The net asset value of Pasdec Group as reported in the audited preliminary
results for the year ended 31 December 2000, excluding Femco Mining.
"After" column:
* The audited preliminary results of Pasdec Group for the year ended 31
December 2000, including Femco Mining; and
* The net asset value of Pasdec Group as reported in the audited preliminary
results for the year ended 31 December 2000, including Femco Mining.
The losses attributable to Femco Mining for the year ended 31 December 2000 are
R730 265.
The management and former management of the Pasdec Group hold the remaining
3.8% of the shares in Femco Mining.
26 March 2001
Sponsor:
KPMG Inc.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
