Dorbyl - Group Restructuring And Disposal Of Opera
Group restructuring and disposal of operation
Dorbyl Water Solutions, a division of Dorbyl, has been sold for a cash
consideration of R50m, effective 1 September 2001 subject to the normal
conditions precedent, to New Adventure Investments 262 (Pty) Ltd. The table
below sets out the pro-forma effects of the disposal, on the earnings and
net asset value per Dorbyl share on the assumption that the transaction was
effective for the year ended 31 March 2001 and was implemented on
1 April 2000. The effects have been calculated based on the audited results
for the year ended 31 March 2001 (the net interest effect being calculated
at 10,5% pre-tax on the cash proceeds of R50m).
Before - Audited After - Pro-forma %
Results (cents) (cents) Change
Earnings
per share 113,3 110,5 (2,5)
Headline
earnings
per share 203,2 182,2 (10,3)
Net asset value
per share* 2 467 2 465 -
*No difference between net asset value and net tangible asset value
While much progress has been made to refocus the group and reduce its spread
of activities in recent years, the Board believes that Dorbyl is still too
diversified. In addition, Dorbyl continues to trade at a discount to its
underlying value. In the light of the above, it is planned to increasingly
refocus the group, entailing a further reduction in activities locally. If
cash deemed surplus to the needs of the group is generated, consideration
will be given to returning funds to shareholders which could include buying
back the company's ordinary shares, as authorised by the company's Articles
of Association and at the last Annual General Meeting, depending on
prevailing circumstances. Shareholders will be informed of further
developments in this regard.
The recent strikes in the automotive industry, the generally depressed
economic conditions being experienced both locally and abroad and the effect
of the recent terrorism activities in the USA, will result in a dampening of
the results for the first six months of the current year when compared to
the first six months of the previous year. Nevertheless, barring further
unforeseen negative economic developments, the results for the full year are
anticipated to be at least comparable to those of the previous year.
Johannesburg
1 October 2001
Sponsor
HSBC
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