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AFRICAN BANK INVESTMENTS LIMITED - ADDITIONAL INFORMATION RELATING TO THE
ACQUISITION OF THE SAAMBOU PERSONAL LOAN BOOK
African Bank Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/021193106)
(Share code: ABL)
(ISIN: ZAE 000030060)
("ABIL")
ADDITIONAL INFORMATION RELATING TO THE ACQUISITION OF THE
SAAMBOU PERSONAL LOAN BOOK
INTRODUCTION
Further to the announcement on 1 August 2002 and the circular to ABIL
shareholders dated 26 August 2002 detailing the terms of the acquisition by
African Bank Limited ("ABL"), a wholly owned subsidiary of ABIL, of the Personal
Loans Book ("PLB") from Saambou Bank Limited ("Saambou"), the following updated
information relating to the terms of the acquisition are being made available:
SAAMBOU
With effect from 30 August 2002, Saambou has been released from curatorship and
the PLB has been placed under the control of the nominated Receiver of certain
of the assets of Saambou, who was appointed in terms of the Scheme of
Arrangement in respect of Saambou proposed by FirstRand Bank Holdings Limited.
TERMS OF THE ACQUISITION
Purchase Price
In previous announcements and in the circular an estimate of the purchase price,
based on Saambou management accounts as at 30 April 2002, was used. The purchase
price has now been finalised as the parties have arrived at the net asset value
of the PLB as at 1 August 2002 using an agreed upon provisioning methodology.
The actual purchase price is calculated as follows:
R`m
PLB gross book 2 802
PLB provisions (1 369)
Net book 1 433
Less provisions for collection costs (367)
Purchase price 1 066
Settlement of the purchase price
The purchase price, as finalised above, will be settled in the following manner:
an initial payment of R808 million will be made on the settlement date (being
the fifth business day after the fulfilment of the last of the conditions
precedent), and
the balance of R258 million, bearing no interest, will be paid within five
business days after the publication of the audited financial statements of the
ABIL Group for the financial year ended 30 September 2006 (which, in certain
circumstances, may be extended by 12 months).
In arriving at the balance of R258 million above, management have assumed a
collections rate of 55%. However, depending on the actual cash collected in
respect of the PLB during the period between the effective date and the fourth
anniversary of the effective date, this amount will vary as disclosed in the
table below:
Actual cash collected as a % of scheduled Balance
collections: payment
Less than 55% of expected cash flows R nil
Equal to or greater than 55% but less than 59% R258m
Equal to or greater than 59% but less than 63% R368m
Equal to or greater than 63% but less than 67% R478m
Equal to or greater than 67% but less than 71% R588m
Equal to or greater than 71% but less than 75% R698m
Equal to or greater than 75% R808m
Conditions Precedent
The acquisition of the PLB remains subject to the conditions precedent set out
in the circular, including, but not limited to, the conclusion of the final
written agreement with the Receiver.
General meeting
A general meeting of ABIL shareholders is being held on Tuesday the 10th
September 2002 at 11:00 at the offices of ABL at 59 16th Road Midrand, to
approve the acquisition by ABL of the Saambou PLB.
On behalf of the board
Midrand
6 September 2002
Financial Advisor and Sponsor
Deutsche Securities (SA)
(Proprietary) Limited
Reg.no:1995/011798/07
Co-Legal Advisors to ABIL
Prinsloo, Tindle and
Andropoulos Inc
Moss-Morris
Receiver to Saambou
John Louw, KPMG
Legal advisors to the South African Government: SHG
Date: 05/09/2002 05:26:00 PM Produced by the JSE SENS Department
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