Metro Cash and Carry Limited - Metcash Trading Lim
major overseas joint venture
Metro Cash and Carry Limited
Share code: MTC
ISIN: ZAE000012688
Metcash Trading Limited adds fourth pillar with major overseas joint venture
The national grocery and liquor wholesale distributor and marketer, Metcash
Trading Limited, announced today that agreement in principle had been reached to
enter into a Joint Venture in the Philippines with that country`s leading food
distributor and wholesaler, Suy Sing Commercial Corporation.
The Philippines operation currently has four distribution centres across
Manila`s metropolitan area, posting annual turnover of approximately $A400
million.
The joint venture, subject to due diligence, documentation and approval by the
relevant authorities, is expected to be effective in early 2003.
The investment of about $US40 million ($A73 million) for 65 % of the Joint
Venture is expected not to dilute Metcash`s earnings in the first year, while
being a profit contributor in the second and following years as the group adopts
the successful business systems of Metcash.
Metcash`s funding requirements will be met 50 % from existing facilities and 50
% from an envisaged private placing.
Chief Executive of Metcash Trading, Mr Andrew Reitzer, said "We are delivering
on our promise of adding a fourth pillar to the Metcash business this year, in
addition to our IGA Distribution, Campbells Cash & Carry and Australian Liquor
Marketers.
"This joint venture demonstrates the renewed strength of the group, which
continues to increase its share of the domestic grocery and liquor wholesaling
markets", he concluded.
For Further Information:
George Cocolas - Group Investor Relations Officer for Metro Cash and Carry
Limited
Tel: (011) 809-5526
email: george.cocolas@metro.co.za
Sponsor
Rand Merchant Bank Corporate Finance
2 October 2002
Date: 02/10/2002 08:40:00 AM Produced by the JSE SENS Department
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