| Tue 25 Jun 2002, 0:00 | | Investec / Capital Alliance - Company Announcement |
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Investec / Capital Alliance - Company Announcement
Investec Group Limited Peu Investment Group (Pty) Limited
(Incorporated in the Republic (Incorporated in the Republic of
of South Africa) South Africa)
(Registration number (Registration number 1996/003899/07)
1925/002833/06) ("Peu")
Share code on the JSE: INT
ISIN code: ZAE000012555
Share code on the NSX:IVC
Share code on the BSE:INV.BT
("Investec")
Capital Alliance Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1952/000756/06)
Share code on the JSE: CPT
ISIN code: ZAE000011904
("Capital Alliance")
Introduction of Peu as a strategic equity partner in Capital Alliance
Introduction
Investec Bank Limited is authorised to announce that Investec has concluded
a transaction with Peu to facilitate the introduction of Peu as a strategic
equity partner in Capital Alliance. In terms of the agreements concluded
between the parties, which are effective from 1 April 2002, Investec has
sold 36,5 million Capital Alliance shares, comprising 20,8% of the issued
share capital of Capital Alliance, to a new company named Lexshell 519
Investments (Proprietary) Limited ("Lexshell") for a total consideration of
approximately R419,4 million. Investec and Peu have each subscribed for the
cumulative redeemable participating preference shares that have been issued
by Lexshell to finance the acquisition. Investec and Peu have each
subscribed for 50% of the issued ordinary shares in Lexshell.
Profile of Peu
Peu is a wholly black owned and managed investment holding company
incorporated in 1996. The management and staff of Peu control approximately
70% of the issued share capital of the company, with the balance of the
equity held by The Instika Enablement Trust, an entity that has as its
ultimate beneficiaries a broad base of historically disadvantaged South
Africans. The executive management of the company, all of whom have
significant business experience from years of service in senior management
positions in a number of leading companies in South Africa and continue to
serve, in a non-executive capacity, on the boards of leading listed
companies and parastatals including the SA Rail Commuter Corporation
Limited, Investec Bank Limited, Super Group Limited, Phumelela Gaming and
Leisure Limited, African Bank Investments Limited, Primedia Limited and
Highveld Steel and Vanadium Corporation Limited, are focused principally on
providing strategic and marketing support to Peu`s underlying investments,
but will also, where necessary, become involved in the underlying investment
companies at an operational level. In this regard, Peu has in the past
seconded certain members of its senior management to a number of its
underlying investment companies, most recently the appointment of Bheki
Shongwe, an executive director of Peu, as deputy Managing Director of Super
Fleet (Proprietary) Limited, a company in which Peu holds a 30% investment.
Peu`s approach to its investments has ensured that the company has, since
incorporation, developed a strong track record in terms of its tangible
contribution, at a strategic and operational level, to the growth and
development of its underlying strategic investments.
Rationale
Investec, as the single largest shareholder of Capital Alliance, believes
that Peu has the required skills and experience to play a significant role
in the strategic development of the business of Capital Alliance. Capital
Alliance management is also confident that Peu can assist Capital Alliance
in a number of areas, principally the broadening of the market for Capital
Alliance`s products and services. Peter Malungani, Executive Chairman of
Peu, has accordingly joined the board of directors of Capital Alliance as
Deputy Chairman.
Johannesburg
25 June 2002
Merchant Bank to Investec Sponsor to Investec and Capital
Alliance
Investec Corporate Finance Investec Securities Limited
Legal advisers to Investec Legal advisers to Peu
Werksmans Edward Nathan & Friedland
Date: 25/06/2002 02:17:35 PM Produced by the SENS Department
