Massmart Holdings Limited - Approval Of Jumbo Acqu
(Registration number 1940/014066/06)
("Massmart")
ISIN CODE : ZAE000029534
SHARE CODE : MSM
Shareholders of Massmart are advised of the following developments
1. APPROVAL OF THE JUMBO ACQUISITION BY THE COMPETITIONS TRIBUNAL
On 21 September 2001, the Competitions Tribunal unconditionally approved the
acquisition by Massmart Holdings Limited "Massmart" from Rebhold Limited of
- the entire share capital of and shareholder claims against Jumbo Cash and
Carry Proprietary Limited,
- the businesses of Sip N Save, a Division of Picardi Liquors (Proprietary)
Limited both with effect from 1 April 2001 and
- the fixed assets, stock, debtors, trade creditors, operating leases and
employee obligations of 22 Browns Cash and Carry and Weirs Cash and Carry
stores with effect from 1 July 2001.
The impact of the acquisitions in respect of the year ended 30 June 2001 was
summarised in Massmart's recent press release in respect of the year end
results and will now be fully incorporated in the Annual Report to be issued
to Shareholders shortly.
Massmart looks forward to the full integration of the acquired businesses
within its portfolio and the positive impact these are expected to have on
earnings and earnings per share.
2. REMOVAL OF THE WOOLTRU GUARANTEE ON MAKRO LEASE PROMISSORY NOTES
Massmart has assisted and collaborated with Wooltru Limited "Wooltru", to
successfully renegotiate the removal of Wooltru's guarantee from the Makro
Lease Promissory Notes, thus removing the last major impediment to the
unbundling of Wooltru's shares in Massmart to Wooltru shareholders.
Massmart will pay R25m towards the cost of unwinding the former arrangement,
which sum will be written off over the 20 year Lease period and therefore
will have a negligible impact on earnings. Excluding this payment, the cash
flows of the new arrangement are identical to those of the previous leases.
The Massmart Directors' decision to contribute to the cost of the removal of
the Wooltru guarantee was motivated by shareholders' interests, which are
well served by the increase in Massmart's free float from approximately 20%
currently, to approximately 60% after the unbundling.
An announcement on the timing and nature of the unbundling will be made by
Wooltru in due course.
3. TRADING UPDATE
Trading conditions have improved from the commencement of the current
financial year and the Group is currently recording double digit sales
growth and profits in line with budget.
The Group is currently confident of meeting its targets, save for the as yet
unquantifiable effect on world trade and local consumer confidence of any
developments arising from the recent terrorist attack on the United States
of America.
Johannesburg
21 September 2001
Sponsor to Massmart
UBS Warburg Securities (South Africa) (Pty) Ltd
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
