June 6, 2003
By Zobuzwe Ngobese
Durban - Super Group, the diversified logistics group, had cut its offer price for all businesses belonging to DNA Supply Chain Investments to R220 million from R284 million after due diligence and contractual negotiations, Keith Grunow, the group financial director, said yesterday.
DNA's share price collapsed on the news, falling 60 percent to a mere 4c a share.
Grunow declined to give specific reasons for the reduced offer, as the deal still required DNA shareholder approval.
According to the new offer, DNA was not required to give Super Group any warranties other than those relating to compliance by members of DNA with their statutory obligations, he said.
DNA's businesses include Micor, Auto, Streamworks, Jumpoint and Sherwood, which includes mining and beverages
.
It could take between two and three months to conclude the deal, after which DNA would be wound up. Grunow said although the acquisition would increase Super Group's turnover, it would not have a material effect.
The group's revenue for the year to March increased 9 percent to R6.01 billion, whereas DNA reported R358 million for the six months to December 2002.
"When we were talking to each other we realised the need for urgency to remove uncertainty from customers and we are intent on concluding this transaction as soon as possible," said Mark Kaplan, the chief executive of DNA.
Once a formal written agreement was reached between the parties, the full terms of the Super Group offer and the financial implications would be disclosed, Kaplan said.
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