Zaptronix Limited - Sale Of Assets And Further Cau
Zaptronix Limited (ZPT)
ANNOUNCEMENT REGARDING THE SALE OF ASSETS AND FURTHER CAUTIONARY
ANNOUNCEMENT
1. Introduction
Benefique Capital (Proprietary) Limited is authorised to announce that the
Company has sold certain of its plant and equipment previously utilised in
its "old commerce" operation, subject to the conditions precedent in
paragraph .3 below.
2. Background and rationale for the disposal
It was noted in the cautionary announcements dated 2 November 2001, 7
December 2001 and the unaudited financial results for the six month period
ended 31 October 2001, that the Directors had made a decision with the
backing of the major shareholders, to curtail and terminate the operations
of the old commerce business and to sell its assets ("the Assets"). This
will result in a smaller more focused and creative operation with cash on
the balance sheet and a significantly reduced overhead structure.
3. The disposal
The Company has disposed of a portion of the Assets for a cash consideration
of R2,06 million to various non-related vendors and will continue to dispose
of the remainder of the Assets in the near term.
Disposals relating to the R2,06 million above are subject to approval of
shareholders in a general meeting and to the regulatory approval of the JSE,
the SRP any other regulatory bodies required to approve such a transactions.
The Company has the undertaking of shareholders holding in excess of 50% of
the issued share capital to vote in favour of the disposal of the assets.
4. Financial effects of the disposal
The table below sets out the pro-forma effects of the disposal on the net
asset value and the earnings per share, after taking into account the
following:
the published unaudited results for the six month period to 31 October
2001; and
after assuming the disposal was effective on 1 May 2001, and the
proceeds had been invested at an after tax interest rate of 6,65%.
Before After %
Loss per share (cents) (3.37) (4.11) (21.8%)
Headline loss per share (cents) (3.37) (1.95) 42.3%
Net Asset Value (cents) 25.84 24.56 (5.0%)
Tangible Net Asset Value (cents) 16.67 15.39 (7.7%)
5. Documentation
A circular containing details of the disposals and the convening of a
general meeting of Zaptronix shareholders will be posted to shareholders
within 28 days of this announcement or such later time as may be agreed by
the JSE and SRP.
6. Further Cautionary Announcement
Shareholders are advised that various transactions are being negotiated
for the sale of the remaining old commerce assets owned by the Company,
other than the above transaction, and they should therefore exercise caution
in dealing with their Zaptronix shares until further announcement is made.
Johannesburg
11 February 2002
Sponsor
BENEFIQUE CAPITAL
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