Control Instruments - Acquisition And Withdrawal O
CONTROL INSTRUMENTS GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1964/003987/06)
Share code: CNL ISIN code: ZAE000001665
("Control Instruments" or "the company")
ACQUISITION BY CONTROL INSTRUMENTS OF THE FLEET MANAGEMENT SERVICES ("FMS")
BUSINESS FROM MATRIX VEHICLE TRACKING (PTY) LTD ("MATRIX") AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT
Introduction
Barnard Jacobs Mellet Corporate Finance (Proprietary) Limited is authorised
to announce that, further to the cautionary announcements dated 7 June, 17
July and 7 September 2001, an agreement has been signed in terms of which
Control Instruments has acquired the FMS business from Matrix, with effect
from 1 October 2001 ("the acquisition").
The FMS business has the Southern African distribution rights to the onboard
vehicle computers which are designed, developed and manufactured by Control
Instruments' subsidiary CI-FMS which is based in Stellenbosch. These
products are sold and distributed by SiemensVDO in the rest of the world.
2. The acquisition
2.1 Terms
The acquisition consideration is R5 250 000 payable in full and in cash on 1
October 2001.
2.2 Rationale
The company has acquired the FMS business as it integrates into the CI-VDO
operation and it will bring CI-VDO's business model in line with
SiemensVDO's worldwide distribution structure.
2.3 Financial effects of the acquisition
The acquisition is expected to have a favourable effect on the company's
earnings and headline earnings from 2002. The table below sets out the pro
forma effect on the net tangible asset value per share, which has been
calculated assuming the acquisition took place on 30 June 2001. There is no
effect on the net asset value and earnings per share of the company.
Before After Change
(cents) (cents) (%)
Net tangible asset 82,4 76,5 (7,1)
value per share
Number of shares in 88 486 88 486
issue (`000)
3. Withdrawal of cautionary announcement
Shareholders are advised that caution is no longer required when dealing in
their Control Instruments securities on the JSE Securities Exchange SA.
Cape Town
10 September 2001
Corporate adviser and Attorneys
sponsor
Barnard Jacobs Mellet Werksmans
Corporate Finance
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