CNL - CONTROL INSTRUMENTS GROUP LIMITED - Withdraw
Withdrawal of Cautionary and Sale of Company
CONTROL INSTRUMENTS GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1964/003987/06)
Share Code: CNL
ISIN: ZAE000001665
("Control Instruments" or "the Company" or "the Group")
SALE OF Pi SHURLOK (PTY) LIMITED ("Pi Shurlok") AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT
INTRODUCTION
Shareholders are referred to the cautionary announcements dated 15 June, 9 July,
20 August and 2 October 2012 and are advised that PFK Electronics (Proprietary) Limited
("PFK") has purchased all the issued share capital and the shareholder's loan in Pi Shurlok
for a nominal amount, with effect from 7 November 2012.
As a result of the transaction, it is expected that the Group will incur a loss from discontinued
operations of approximately R58.6 million for the year ended 31 December 2012. This loss
has already been provided for in the results for the six months ended 30 June 2012 and
comprises trading losses and an impairment loss due to the write-off of the net investment in
Pi Shurlok by the Group.
The disposal is subject to the normal terms and warranties for a transaction of this nature. In
terms of Section 13A(1) of the Competition Act 89 of 1998, no approval by the Competition
Authorities is required.
Since the Group exited its international original equipment manufacturing ("OEM") operations
at the end of 2011, the stated intention has been to reposition and refocus the Group as a
predominantly automotive aftermarket business.
As a result of the disposal of Pi Shurlok, the Group has no further exposure tothe OEM
sector of the automotive industry. The exit from the OEM business will result in a reduction in
capital expenditure and working capital requirements of the Group.
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are advised that they no longer need to exercise caution when dealing in the
Company's securities.
Johannesburg
7 November 2012
Sponsor
Investec Bank Limited
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