SABVEST LIMITED - DISPOSAL OF AUTOMOTIVE INVESTMEN
SABVEST LIMITED - DISPOSAL OF AUTOMOTIVE INVESTMENT
SABVEST LIMITED
(Registration Number 1987/003753/06)
ORDINARY SHARES : SHARE CODE : SBV ISIN : ZAE 000006417
"N" ORDINARY SHARES : SHARE CODE : SVN ISIN : ZAE 000012043
("Sabvest")
Disposal of automotive Investment
The Disposal
A wholly` owned subsidiary of Sabvest has disposed of its 38% holding in
Autoquip Group (Pty) Limited ("Autoquip") ("the disposal").
Business of the Automotive Investment
Autoquip carries on the business of distribution of Bridgestone tyres,
automotive replacement parts, motor sport accessories and wheels.
Rationale for the Disposal
Due to differences of opinion as to the future structure and strategy of
Autoquip, Sabvest agreed that the operating and industrial shareholders would
continue as the shareholders of Autoquip and that Sabvest would dispose of its
holding.
Disposal Consideration
Sabvest received a cash consideration of R11 334 041 from Autoquip on 11
December 2002 for its interest in Autoquip.
Application of Proceeds
The disposal proceeds will be used to reduce Sabvest`s interest-bearing
borrowings and for short-term finance advances to investees.
Financial Effects of the Disposal
If the disposal had taken place on 1st January 2002 the effect on the headline
earnings per share and earnings per share for the six months ended 30 June 2002
and on net asset value per share as at 30 June 2002 would have been as follows :
Before After %
the Ddisposal the disposal Increase
Headline earnings per share - cents 13,1 14,1 + 7,6
Earnings per share - cents 12,8 20,1 +57,0
Net asset value per share - cents 298 305 2,4
Working Capital
Notwithstanding that it is no longer a shareholder in Autoquip, a subsidiary of
Sabvest has undertaken to provide a working capital loan facility of R5 million
to a subsidiary of Autoquip for a maximum period of three years.
Sandton
17 December 2002
Sponsor
RMB Corporate Finance
(A division of FirstRand Bank Limited)
Date: 17/12/2002 02:27:08 PM Produced by the JSE SENS Department
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