Disposal Of The Main Pipesystems Division Of Murra
MURRAY & ROBERTS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1948/029826/06)
("the Company" or, together with its subsidiaries, "the Group")
Disposal of the Main Pipesystems division of Murray & Roberts Limited
1. Introduction
Further to the cautionary announcements dated 21 December 2000, 31 January 2001
and 28 February 2001, shareholders are advised that, subject to the approval of
the Competition Commission, the Company's wholly owned subsidiary, Murray
&Roberts Limited ("M&R"), has concluded an agreement with A.G. Petzetakis SA, a
company registered in Greece, in terms of which a wholly owned South African
subsidiary of that company ("Petzetakis"), has acquired the Main Pipesystems
division of M&R ("Main Pipesystems"), as a going concern, with effect from 1
March 2001 ("the disposal").
Main Pipesystems comprises Main Industries, Megaflex, Polyflow and Supraflow,
and is the market leader in the manufacture and supply of plastic piping in
South Africa.
2. Terms of the disposal
M&R will sell Main Pipesystems to Petzetakis for a consideration of R169
million with effect from 1 March 2001.
The disposal price, together with interest accrued from 1 March 2001, will be
paid in cash on receipt of the necessary Competition Commission approval. M&R
will receive appropriate bank guarantees relating to such payment by 30 April
2001.
3. Rationale for the disposal
The disposal is in line with the Group's strategy of disposing of non core
operations.
The disposal proceeds will be utilised, in the first instance, to reduce the
Group's local short term borrowings.
4. Pro forma financial effects of the disposal on the Group
The calculations of the financial effects of the disposal are based on the
published unaudited interim financial results for the six months ended 31
December 2000 and assume that the disposal had been implemented on 1 July 2000
with the disposal proceeds utilised to reduce short term borrowings.
The table below sets out the pro forma effects of the disposal on headline
earnings per share of the Group.
Six months to 31 December 2000
Published
Unaudited Pro forma Change
Headline earnings per share 26 cents 28 cents + 7,7%
The disposal would not have had a material effect on the tangible net asset
value per share of the Group at 31 December 2000.
Bedfordview
6 April 2001
Sponsor
Merrill Lynch
Smith Borkum Hare
Merrill Lynch South Africa (Pty)Ltd
Registration No. 1995/001805/07
Member of the JSE Securities Exchange South Africa
Attorneys
Michael Krawitz &Co.
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