| Tue 17 Jun 2003, 15:09 | | SOUTH AFRICAN CHROME AND ALLOYS LIMITED - RESULTS |
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SOUTH AFRICAN CHROME AND ALLOYS LIMITED - RESULTS OF ISSUE OF SHARES FOR CASH
SOUTH AFRICAN CHROME AND ALLOYS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/003452/06)
("SA Chrome" or "the Company")
JSE Share Code: SCE ISIN: ZAE 000022943
ISSUE OF SHARES FOR CASH
1. BACKGROUND
Shareholders of SA Chrome were advised on 13 March 2003 that the Company was in
the process of securing funding for capital expenditure to acquire additional
chromite reserves and to upgrade the existing ferrochrome facility, for loan
payments to its lending banks and for a feasibility study to expand its
ferrochrome facility (in a joint venture with Jiuquan Iron & Steel Co. of
China).
SA Chrome is pleased to advise shareholders that the required funding of R108.4
million has been raised through a general issue of shares for cash and a
proposed special issue of shares for cash.
2. GENERAL ISSUE OF SHARES FOR CASH
A total of 82,374,391 new ordinary shares have been issued to institutional
shareholders raising R49.4 million (the "general issue"). On 30 May 2003,
6,655,725 new ordinary shares were issued at 60 cents each, being a 9.1%
discount to the 30-day weighted average price of 66 cents per share. On 17 June
2003, an additional 75,718,666 new ordinary shares were issued at 60 cents each,
being a 3.2% discount to the 30-day weighted average price of 62 cents per
share.
The general issue, which represents 8.1% of the Company"s share capital, was
completed in accordance with the authority granted at the last annual general
meeting.
3. EFFECTS OF THE GENERAL ISSUE
The effects of the general issue on SA Chrome"s earnings (for the six months to
30 September 2002) and net asset value (at 30 September 2002) are set out below:
Before After Improvement
(cents) (cents) (%)
Attributable and headline (4.80) (4.11) 14.4
loss per share 1
Net asset value per share 31.61 33.78 6.8
2
Notes:
1. The effect on the attributable and headline loss per share is based on the
published interim results for the six month period ended 30 September 2002, on
the assumption that the general issue was effected on 1 April 2002 and the
proceeds utilised to settle debt with an effective interest rate of 14.7% per
annum.
2. The effect on net asset value per share is based on the published balance
sheet at 30 September 2002, on the assumption that the general issue was
effected on 30 September 2002. Tangible net asset value per share is not
materially different to net asset value per share.
4. LISTING OF SHARES
The JSE has approved the listing of the new ordinary shares issued in terms of
the general issue as follows:
*6,655,725 new ordinary shares, with effect from the commencement of trading on
Friday, 30 May 2003; and
*75,738,666 new ordinary shares, with effect from the commencement of trading on
Tuesday, 17 June 2003.
5. SPECIFIC ISSUE OF NEW ORDINARY SHARES FOR CASH
SA Chrome"s major shareholders are the Royal Bafokeng Nation, represented by
Royal Bafokeng Resources (Proprietary) Limited ("RBR"), and the Industrial
Development Corporation Limited ("IDC"). RBR has agreed to subscribe for
41,666,666 and the IDC for 56,666,666 new ordinary shares in SA Chrome at an
issue price of 60 cents per new ordinary shares (the "specific issue").
In terms of the requirements of the JSE Securities Exchange South Africa (the
"JSE"), the specific issue is subject to the approval of a 75% majority of the
votes of all shareholders of SA Chrome present or represented by proxy at the
general meeting, other than RBR and IDC.
The amount of R59 million to be raised by the specific issue has been advanced
to SA Chrome as an interest free loan, in anticipation of shareholder approval.
SA Chrome will have, after the general and specific issues, sufficient funds for
its capital requirements.
Information complying with the JSE requirements in respect of the specific
issue, including the effects of the specific issue and resolutions for the
approval of the specific issue will be included in the Company"s annual report,
which will be posted during July 2003.
6. NEW WEBSITE
SA Chrome has launched their new website, which is available for viewing at
www.sachrome.co.za.
Johannesburg
17 June 2003
Sponsor
RMB
Date: 17/06/2003 02:40:48 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
