Kolosus Holdings Limited - Disposal Of Spekenam (a
business and processed meat plant)
Kolosus Holdings Limited
INTRODUCTION
Shareholders are advised that agreement has been reached for the disposal of
the Spekenam business, properties and related equipment. The property and
the business of the abbattoir and its equipment will be sold to Mr D M
Osborne or his nominee and the balance of the equipment will be sold to
various other parties.
RATIONALE
The Spekenam operation is no longer regarded as a core business and the
directors therefore concluded that it should be sold. This will improve the
Group's profitability and allow improved focus on existing operations.
NATURE OF THE DISPOSAL
Spekenam comprises of a pig abattoir, a processed products plant supplying a
leading chain store and a fresh meat supply business.
The processed products plant will be closed at the end of October and the
assets disposed of to third parties.
TERMS OF THE DISPOSAL
The consideration for the disposal will be payable to Kolosus by means of
cash payments of R1,1 million on 29 October 2001, R3,3 million by the end of
November 2001 and a payment of R7 million plus interest thereon at the rate
of 11,3% per annum calculated from 29 October until the date of registration
of transfer of the fixed property included in the disposal.
FINANCIAL EFFECTS
The table below sets out the financial effects of the proposed disposal on
the headline loss per share, loss per share, and net asset value based on
the annual results to 30 April 2001. The figures in the after column assume
the disposal was effected on 1 May 2000:
Before sale After sale Percentage
Cents Cents Change %
Headline loss
per share (18.20) (15.02) 17.47
Loss per share (23.24) (20.05) 13.73
Net asset value
per share 30.13 33.31 10.55
Pretoria
23 October 2001
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
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