Refinancing Of Ster Century Europe Limited And Wit
cautionary announcement
KERSAF INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1967/007528/06)
("Kersaf")
PRIMEDIA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/003355/06)
("Primedia")
Refinancing of Ster Century Europe Limited and
withdrawal of the joint cautionary announcement
Further to the cautionary announcement dated 15 June 2001, holders of
Kersaf shares and/or Primedia units are hereby informed that Kersaf, through
its 73,3% owned subsidiary Royale Resorts Holdings Limited ("Royale
Resorts") and Primedia (together "the Shareholders"), have resolved to
terminate the auction process in respect of Ster Century Europe Limited
("Ster Century Europe") and to refinance the business.
Ster Century Europe currently operates 15 cinema multiplexes (171
screens) in Europe. A further eight multiplexes (91 screens) have been
contracted, of which five are scheduled to be open by December 2001, with a
further two in 2002 and one in 2003, at which point the programme of new
openings as envisaged in the business plan will be completed.
Ster Century Europe has secured a financing package that will provide for
the refinancing of existing borrowings of US$39 million, the funding
required for the new sites and other operating requirements. The financing
package comprises US$50 million of participating mezzanine notes and a US$30
million bank facility and is subject to finalisation of legal documentation
and such approval of the South African Reserve Bank as may be required. This
funding is over and above the US$102 million of equity that has been
provided to date by the Shareholders in equal proportions. Details of the
financing package, as well as the resultant shareholdings in Ster Century
Europe, are set out in the table below:
Resultant shareholding
US$ million in Ster Century Europe
Participating mezzanine notes
Royale Resorts 20 46,9%
Primedia 10 40,6%
ING Barings 20 12,5%
Bank facility
Standard Bank 30
Total 80 100,0%
The financing package will enable Ster Century Europe to complete its
business plan and to focus on achieving its operational targets over the
next two years. Royale Resorts remains committed to realising this non-core
investment and believes that a sale in due course will unlock better value
than could be achieved in the recent auction process.
Primedia unitholders are also referred to the separate announcement that
will appear on the Stock Exchange News Service today and which deals with
the proposed split of the Primedia group which, inter alia, will result in
the creation of a separate listed entity to house Primedia's filmed
entertainment interests.
Holders of Kersaf shares are advised that caution is no longer required
when dealing in their shares while Primedia unitholders are referred to the
announcement released by Primedia today.
Sandton
18 July 2001
Financial adviser to Kersaf and Primedia
Ing Barings
Sponsor to Kersaf
Ing Barings
Sponsor to Primedia
Investec Bank Limited
(Registration number 1969/004763/06)
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