Wiphold - Acquisition Of A 25% Interest In Phapham
LIMITED
Women Investment Portfolio Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/001291/06)
("Wiphold" or "the company")
ACQUISITION OF A 25% INTEREST IN PHAPHAMA HOLDINGS (PROPRIETARY) LIMITED
Introduction
Shareholders are advised that Wiphold has acquired a 25% interest in
Phaphama Holdings (Proprietary) Limited ("Phaphama") from Dikgang Moseneke's
family trust with effect from 17 July 2001. Phaphama holds 52,5% of the
issued ordinary shares of New Africa Investments Limited ("NAIL") and,
through this shareholding, exercises effective control over NAIL.
Rationale
Wiphold is currently in the process of transforming itself from an
investment trust into an operational financial services company. It is
believed that the acquisition of a significant interest in Phaphama will
assist this process in the following manner:
subsequent to the restructuring of NAIL announced on 5 March 2001, New
Africa Capital Limited ("NAC") will be the listed holding company of
Metropolitan Life Limited ("Metlife") and it is intended to develop NAC into
a significant, empowerment-profiled financial services company;
the acquisition of the Phaphama stake by Wiphold enhances the possibility of
a closer relationship between Wiphold and NAC; and
the other shareholders of Phaphama share Wiphold's vision in regard to its
financial services strategy and will be supportive of these initiatives to
further such strategy.
In addition to the potential benefits to Wiphold's financial services
strategy, the value of the stake in Phaphama is underpinned by NAIL's
investments in Metlife and its media assets.
Purchase consideration and financial effects
The purchase consideration for the 25% stake in Phaphama is R35 million,
which has been paid in cash. The financial effects of the acquisition are
not expected to be material and if necessary will be disclosed in Wiphold's
interim financial report to shareholders.
NAIL restructuring
Wiphold supports the restructuring initiatives currently being undertaken by
NAIL, as set out in the NAIL announcement published today. Subsequent to
the anticipated unbundling of NAC, Wiphold intends to retain its investment
in NAIL which, although relatively small, carries significant influence over
NAIL's media assets.
Way forward
Wiphold intends to continue pursuing its financial services strategy. The
stake in Phaphama will be reviewed from time to time in light of the
developments in this strategy.
Johannesburg
18 July 2001
Sponsor
Wipcapital (Proprietary) Limited
(Registration number 1997/021195/07)
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