Steers Holdings Limited - Acquisition of Regional Master License
Agreement
The acquisition
Steers Holdings Limited is authorized to announce that a wholly owned
subsidiary, Firststeers Fastfood Franchise Company (Pty) Ltd, has
concluded an agreement with BBG`s Food Services CC to acquire the
Eastern Cape Master License Agreement, on the terms and conditions as
detailed below, with effect from the 1 October 2002.
The acquisition entails the buying back of the Regional License
Agreement for the marketing of the Steers, Debonairs Pizza and FishAways
brands in the Eastern Cape region, as well as the business related to
the distribution of products and services to the Eastern Cape franchise
network.
This transaction is in line with the Steers` stated strategy to directly
manage and control the growth of our brands within South Africa rather
than to sub contract to 3rd party entrepreneurs via licensing
agreements, an iniative used effectively during Steers` pioneering phase
and prior to listing.
The acquisition is subject to the satisfactory outcome of a due
diligence investigation.
Purchase consideration
The consideration payable for the purchase of the business is R 7 800
000, which amount will be settled in cash on the effective date.
Financial effects
Had the acquisition been effective at the beginning of the financial
year commencing 1 March 2001, the effect on Steers` earnings and
headline earnings per share for the year ended 28 February 2002, and the
effect on net assets per share as at the 28 February 2002 would have
been as follows:
Audited Pro forma Increase /
Results for results after (Decrease)
the year the
ended 28 acquisition
February 2002
Earnings per 16.9 18.5 9.4%
share
Headline 17.3 19.6 12.8%
earnings per
share
Net asset 118.2 119.7 1.3%
value per
share
Johannesburg
24 July 2002
Sponsor
HSBC
Date: 24/07/2002 10:00:10 AM Produced by the JSE SENS Department
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 has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
