ACQUISITION BY OTK LIMITED OF THE REMAINING 50% OF NOLKO (PTY) LIMITED
OTK Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/004030/06)
("OTK")
ACQUISITION BY OTK LIMITED OF THE REMAINING 50% OF NOLKO (PTY) LIMITED
1 Introduction
Shareholders are advised that OTK Limited, a wholly owned subsidiary of OTK,
has successfully concluded negotiations to acquire the remaining 50% of the
issued share capital in Nolko (Proprietary) Limited ("Nolko") ("the
acquisition") from Vrystaat Ko perasie Beperk, with effect from 1 March
2001.
2 Rationale for the acquisition
Nolko, situated in Bethlehem, is an established animal feed manufacturer
with a recognised brand. Subsequent to the acquisition it will become a
wholly owned subsidiary of OTK Limited contributing approximately 100 000
tons of animal feed annually to the OTK Feeds Division ("OTK Feeds").
Accordingly the acquisition is in line with OTK's stated strategic intention
of increasing the OTK Feeds' dominance in the animal feed sector, expanding
its geographical reach, imparting OTK's intellectual capital and allowing
OTK to roll out its comprehensive service offering to an ever-increasing
number of customers.
3 Terms of the acquisition
All suspensive conditions to the acquisition have been fulfilled. The
purchase price amounted to R9 800 000 and was paid in cash on 1 June 2001.
4 Financial effects of the acquisition
The acquisition will not have a material effect on the earnings or the net
asset value of OTK.
Bethal
4 June 2001
Corporate advisor and sponsor
Brait
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