Indequity - Acquisition Announcement
Release Date: 24/02/2003 17:30:21 Code(s): IDQ
Indequity - Acquisition announcement
Indequity Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/015883/06)
("Indequity" or "the company")
Share code: IDQ ISIN Number: ZAE000016606
Acquisition announcement
Indequity has entered into an agreement with GIPS Limited and Dudley Graham
Ward, the shareholders of Global Investment Planning Services (Pty) Ltd
("Global"), in terms of which Indequity has acquired the entire issued share
capital of Global with effect 1 December 2002.
Nature of the business of Global
Global is an asset manager registered with the Financial Services Board and is a
linked investment services provider, managing investments on behalf of clients.
Global`s clients are primarily high net worth individuals and institutions.
Rationale for the transaction and expected benefits
The acquisition of Global is part of Indequity`s long-term strategy to expand
their investment division by obtaining third party funds under management. The
Global acquisition will substantially enhance Indequity`s client base and
improve the Indequity Group`s earnings potential.
Consideration
The acquisition consideration is R1.5 million and will be settled by payment of
R1 million cash and the issue of 500 000 Indequity ordinary shares at R1.00
each.
Financial effects
The financial effects of the Global acquisition on Indequity`s historical
earnings, headline earnings and net asset value per share are not material.
Categorisation of the transaction
The Global acquisition is a Category 3 transaction in terms of the JSE Listings
Requirements.
Johannesburg
24 February 2003
Sponsor
KPMG Serivces (Pty) Ltd
Date: 24/02/2003 05:30:00 PM Supplied by www.sharenet.co.za
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