Update Of Cautionary Announcement
VIKING INVESTMENTS & ASSET MANAGEMENT LIMITED
(Registration No. 1998/04440/06)
(Share code: VKG)
(ISIN Code: ZAE000015871)
("Viking" or "the Company")
ANNOUNCEMENT REGARDING NEW ACQUISITION IN THE UNITED STATES AND UPDATE OF
CAUTIONARY ANNOUNCEMENT
1. Introduction
Further to the cautionary announcements issued by the Company on 18th
December 2001, 29th January 2002 and the 20th February 2002,
PricewaterhouseCoopers Corporate Finance (Pty) Ltd is authorised to announce
that a Letter of Intent has been signed between a U.S. company, Metech
International Inc. ("Metech"), a wholly owned subsidiary of Trelleborg AB
(pub), and Viking's wholly owned US subsidiary, Viking Platinum Investments
LLC ("Viking U.S."). A newly formed Delaware company ("Newco"), consisting
of Viking U.S. (as a major shareholder) and Metech management will acquire
various assets and liabilities of Metech as a going concern.
Trelleborg AB (pub) is one of Sweden's largest industrial conglomerates
operating in over 40 countries with annual revenues of SEK 20 billion and
total assets of SFK 17 billion.
2. Nature of the Business
Metech is in the business of extracting and processing precious metals,
predominately platinum, palladium, gold and silver, obtained from electronic
equipment manufacturers, jewellery manufacturers and metal fabricators.
Metech is one of the leading extractors of previous metals in the United
States. Metech has established a leading position in the largest growth
segment of this market, the recycling of precious metals from electronics
manufacturers, and currently estimates its US market share to be greater
than 20%. The electronics recycling market is forecast to grow at a pace
greater than 15% per annum over the next 5 years.
Metech has operations in the Northwest (Rhode Island) and Silicon Valley
(northern California) from which the vast majority of current and potential
sources of electronic recycling material originate. In addition, Metech's
sophisticated logistics network enables it to arrange for the collection and
transportation of materials originating throughout the U.S. to its
processing facilities.
Metech has approximately 140 employees and turnover for the year ended
December 31, 2001 was USD$97 million.
3. Rationale for the Acquisition
The venture will combine the financial resources, derivative expertise and
entrepreneurial experience of Viking with he proven expertise of Metech
management in the field of extracting and processing precious metals. This
transaction will be complementary to the previous purchase of Viking
Platinum LLC, announced on the 20th January 2002, and will consolidate
Viking's previous shift in strategy to acquire strong resource-based growth
businesses generating consistent earnings and cash flow.
4. Terms of the Acquisition
Viking will purchase selected assets and liabilities from Metech on a going
concern basis. This acquisition is subject to final legal documentation,
regulatory approvals and Finalisation of financing. The transaction is
scheduled to close prior to June 30, 2002.
5. Further Cautionary
Shareholders are advised to continue to exercise caution when dealing in
Viking's securities until a further announcement is made.
Johannesburg
2 April 2002
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
