Disposal Of Sasani's 53% Stake In Sasani Communica
SASANI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1955/00259/06)
Share Code: SSA ISIN Code: ZAE000017851
("Sasani")
DISPOSAL OF SASANI'S 53% STAKE IN SASANI COMMUNICATIONS (PROPRIETARY)
LIMITED
INTRODUCTION
Shareholders are advised that Sasani has disposed of its 53% stake in Sasani
Communications (Pty) Ltd ("Sasani Communications") represented by 265 shares
of 100 cents each, to TBWA Hunt Lascaris Holdings (Proprietary) Limited
("TBWA") for a total consideration of R4 900 000, payable in cash. The
disposal includes all claims of whatsoever nature and however arising that
Sasani may have against Sasani Communications ("sale claims") and a dividend
due to Sasani by Sasani Communications, declared prior to 30 June 2001 to
TBWA.
RATIONALE
Sasani does not regard the 53% stake held by it in Sasani Communications as
core to its business. Therefore as part of Sasani's strategy to dispose of
its non-core assets the directors have concluded that the shareholding
should be sold, which will allow improved focus on Sasani's core operations.
The proceeds of the disposal will be applied to the reduction of debt within
Sasani.
NATURE OF THE DISPOSAL
Sasani Communications is a public relations agency.
TERMS OF THE DISPOSAL
The consideration for the disposal will be payable to Sasani on signature of
the agreement between Sasani, TBWA and Sasani Communications ("the
agreement").
Notwithstanding the signature date of the agreement which is 20 December
2001, the agreement is effective from 1 July 2001.
The agreement does not contain any conditions precedent.
FINANCIAL EFFECTS
Set out below are the unaudited pro forma financial effects of Sasani after
the disposal, which are provided for illustrative purposes only to show the
financial effects of the disposal on Sasani, had the disposal taken place on
1 July 2000.
Note Pro forma Pro forma Percentage Change
Before disposal After disposal Increase/Decrease
(Cents) (Cents) (%)
Headline earnings
per share 1 15.4 14.1 (8.0%)
Loss per share 1 (1.3) (2.6) (91.7%)
Net asset value
per share 2 233.4 236.3 1.2%
Net tangible asset
value per share 2 134.0 136.8 2.1%
Notes:
1. The headline earnings per Sasani share and the loss per Sasani share in
the "Before" column are based on the published annual results of Sasani for
the year ended 30 June 2001. The headline earnings per Sasani share and the
loss per Sasani share in the "After" column are based on the assumption that
the total consideration of R4 900 000 had been received on 1 July 2000 and
utilised to reduce Sasani debt at an after tax rate of 10.15% per annum.
2. The net asset value per Sasani share and tangible net asset value per
Sasani share in the "Before" column are based on the published annual
results as at 30 June 2001. The net asset value per Sasani share and the
tangible net asset value per Sasani share in the "After" column are based on
the assumption that the disposal was implemented on 30 June 2001.
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
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