SABVEST LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/003753/06)
Ordinary shares : Share code: SBV ISIN: ZAE000006417
`N' ordinary shares : Share code: SVN ISIN : ZAE 000012043
("Sabvest")
1. Offer by Nutri Global Limited for shares in Natural Health Holdings
Limited ("NHH") Offer for shares in NHH
NHH published an announcement on 11 April 2002 advising its shareholders
that it had received a letter of offer from Nutri Global Limited ("Nutri
Global") to acquire all of the shares in NHH not held by certain named
parties at 25 cents per share ("the offer").
2. Sabvest response
Sabvest Investments (Pty) Limited, a wholly owned subsidiary of Sabvest,
owns 64,803,116 shares in NHH and has indicated that, subject to the other
conditions of the offer being fulfilled and Nutri Global proposing a scheme
of arrangement in terms of section 311 of the Companies Act (Act 61 of 1973)
before 31 July 2002, it will vote in favour of accepting the offer for its
shareholding in NHH.
3. Rationale
Sabvest believes that the offer price is fair and, in addition, the proceeds
of the sale of its NHH shares amounting to R16,2 million will reduce its
debt equity ratio to below 10% and complete its debt reduction programme.
4. Financial effects
If the offer had been made at the beginning of Sabvest's last financial year
ended 31 December 2001, the financial effects would have been as follows :
Before After % Increase
Headline earnings per share for the
12 months ended 31 Dec 2001 - cents 24,3 24,8 2,1
Earnings per share for the 12
months ended 31 Dec 2001 - cents (33,2) (31,1) 6,3
NAV per share at 31 Dec 2001 - cents 295 297 0,7
It has been assumed that there would be a saving of interest paid on the
proceeds of the sale at a rate of 13% per annum.
5. Category 2 transaction
The transaction is a Category 2 transaction as defined by the JSE Securities
Exchange South Africa and, accordingly, a circular will be dispatched to
shareholders for information purposes within twenty eight days.
Sandton
16 April 2002
Sponsor
Rand Merchant Bank
A division of FirstRand Bank Limited
Corporate Finance
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