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Restructuring Of Mustek`s Technology Investment Portfolio
Mustek Limited
Incorporated in the Republic of South Africa
(Registration number 1987/070161/06)
Share Code: MST ISIN: ZAE000012373
("Mustek")
RESTRUCTURING OF MUSTEK`S TECHNOLOGY INVESTMENT PORTFOLIO
1. Introduction
Further to the cautionary announcement published in the press on 31 July 2002,
Mustek and it`s subsidiaries have, as part of the restructuring of the
technology investment portfolio, reached agreement to dispose of 50% of the
shares and loan accounts in some of the investments held in the technology
investment portfolio for a cash consideration of US$3 million ("the disposal")
to Crownridge Services Limited ("Crownridge"), subject to certain conditions
precedent being fulfilled.
2. The disposal
The disposal consists of 50% of the shares in and loan accounts against:
- Preworx (Pty) Ltd a software development company, which has developed
world-class pre-boot technology;
- Surecom (Pty) Ltd a mobile commerce and secure web commerce development
company; and
- Wavetrend (Pty) Ltd, which develops automated wireless/tag reader
identification technology.
The US$3 million proceeds, from the disposal, will be applied to organic growth
opportunities within Mustek`s core business.
3. Rationale
Mustek has invested into the technology investment portfolio over the past 4
years. Currently several of these investments are at the stage where they
require a strategic investor with access to international markets and networks.
Crownridge (a registered BVI company) is an international private equity
company, which can add significant strategic value to these investments through
its international network.
4. Financial effects of the disposals
The table below illustrates the financial effects of the disposal on Mustek`s
headline earnings and earnings per share for the six month period ended 31
December 2001.
Historical Pro forma Change
before the after the (%)
disposal disposal
Note 1 2
Headline 38,00 39,14 3.00%
earnings per
share
Earnings per 31,52 29.78 (5.53%)
share
The disposal will not have a material effect on the net asset value or tangible
net asset value per Mustek share.
Notes:
The table has been prepared on the following basis:
1) The "Before" column represents the unaudited headline earnings per
share and earnings per share of Mustek for the six month period ended 31
December 2001.
2) The "After" column reflects the after tax interest income, that Mustek
would have earned had the proceeds been converted into South African rand (ZAR)
at an exchange rate of R10,90 and invested at an after tax rate of 7% for the
six month period ended 31 December 2001. The accounting loss on the disposal of
the investments has been taken into account for the calculation of earnings per
share.
3) These investments are not consolidated in the financial statements of
Mustek
Midrand
22 August 2002
Joint Corporate Advisors Sponsor Legal Advisors
Merchantec Exchange Sponsors Kramer and Viljoen
Corporate Solutions
Date: 23/08/2002 05:15:00 PM Produced by the JSE SENS Department
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