| Fri 23 Nov 2001, 0:00 | | The Bidvest Group Limited - Acquisition Of Interes |
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("Jacobs")
("Bidvest")
Acquisition of Interest in Jacobs Holdings Plc ("Jacobs")
Bidvest has entered into a conditional agreement to invest GBP30 million
(R411 million) into Jacobs in exchange for an issue of new shares by Jacobs.
On successful completion, Bidvest will hold 56.7% of Jacobs, which will
retain its London listing.
The subscription of GBP30 million will be satisfied by the granting of an
option of 5,000,000 shares at 20p, as well as the issue of 128,888,878
shares at 22.5p by Jacobs to Bidvest. Bidvest has undertaken to exercise the
option on successful completion of the subscription. As at the close of
business on 21 November 2001, the Jacobs share price was 19.5p.
The subscription is dependent on receiving approval from Jacobs'
shareholders at an Extraordinary General Meeting. Bidvest has obtained
approval for this transaction from the Exchange Control Division of the
South African Reserve Bank.
Jacobs was established in 1881 and has been listed on the London Stock
Exchange since 1929 and currently has a market capitalisation of
approximately GBP20 million. Since 1994 Jacobs has been developed into a
company focusing on automotive logistics and shipping and operates in
similar businesses to Bidfreight, the freight services division of Bidvest.
Bidvest would like to see Jacobs developed as an international services
business, particularly in freight services. The directors of Jacobs and
Bidvest believe that Jacobs will be able to benefit, where appropriate, from
working with Bidfreight. Bidfreight handles more than R100 billion (GBP7
billion) worth of trade annually, which is a significant portion of South
Africa's imports and exports. Bidfreight's customer base has expressed an
interest in having access to similar physical operations in the United
Kingdom and Europe. Bidfreight Terminals already provide one leg of the
import/export node of the international supply chain in South Africa and
Jacobs could, with further development, provide another node in the United
Kingdom and Europe. Jacobs would also be able to provide complementary
services.
Following completion, Jacobs will be focused into three divisions - Freight
Services, Automotive Logistics Services and Property Outsourcing Services.
Bidvest intends to provide Jacobs, where necessary, with all the commercial,
financial and managerial expertise for the Jacobs' directors to refocus and
restructure the businesses. This will involve cost saving initiatives which
may include the disposal of non-core assets, followed by a strategy of
growth and acquisition.
Brian Joffe, Chairman of Bidvest, commented:
"We will be delighted to be able to welcome Jacobs into Bidvest and look
forward to assisting the Jacobs' directors to develop their business.
Through its relationship with Jacobs, Bidvest will be able to service its
customers' needs with a more comprehensive and efficient logistics
operation, from point of origin to final destination."
23 November 2001
Enquiries:
The Bidvest Group Limited Tel: + 27 (0) 11 481 4100
Brian Joffe, Chairman Cell: 082 441 2957
Jack Hochfeld Tel: +27 (0) 11 481 4103
Cell: 082 459 7051
College Hill Johannesburg Tel: + 27 (0) 11 447 3030
Nick Elwes
Robyn Hunt
