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INSURANCE OUTSOURCING MANAGERS HOLDINGS LIMITED - ACQUISITION OF PREMIUM CREDIT
S.A. (PROPRIETARY) LIMITED ("PREMIUM CREDIT") AND WITHDRAWAL OF CAUTIONARY
ANNOUNCEMENT
INSURANCE OUTSOURCING MANAGERS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013121/06)
("INSURE" or "the company")
JSE Code: INS
ISIN Code: ZAE 000033221
ACQUISITION OF PREMIUM CREDIT S.A (PROPRIETARY) LIMITED ("Premium Credit") AND
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
INSURE directors are pleased to inform shareholders that INSURE has acquired
100% of the shares in and claims against Premium Credit (Pty) Ltd from FirstRand
Bank Limited ("FirstRand") with effect from 01 October 2003, for an effective
purchase consideration of R955 000 in cash. All conditions precedent to the
transaction have been met.
The rationale for the acquisition of Premium Credit is to expand INSURE"s
premium financing activities in accordance with its strategy to grow its core
products and competencies. Premium Credit"s main business comprises the short
term financing of annual or single instalment insurance premiums. The
acquisition of Premium Credit will have the effect of increasing INSURE"s
premium financing debtors book materially, with a similar increase in the
funding of the group, which has been provided by INSURE"s bankers. The articles
of association of Premium Credit will be amended, if necessary, in line with the
articles of association of INSURE and in accordance with the JSE Listings
Requirements.
The benefits expected from the acquisition are, inter alia, to capitalise on
previously communicated cost efficiencies and optimise scale economies, thereby
ensuring further competitive pricing and enhanced service delivery. The
acquisition will enable INSURE to offer its other industry specific products
such as its collection service - "EPiC" and broker acquisition support -
"InAdvance" to the expanded client base.
In addition, shareholders are advised that INSURE has entered into a
relationship agreement with FirstRand regarding the future referral of business.
The name "Premium Credit" will be retained.
The financial effects of the acquisition of Premium Credit on the published
interim results of INSURE for the six months ended 31 August 2003, as though the
acquisition had been in effect for the entire period, is as follows:
Fully diluted information Reviewed Pro Percentage
31 Aug forma change
2003 31 Aug
Before 2003
After
Earnings per share (cents) 1,1 1,8 61%
Headline earnings per share 1,1 1,8 61%
(cents)
Net asset value per share 15,0 15,0 0%
(cents)
Tangible net asset value per 15,0 14,4 (3,8%)
share (cents)
Following the above announcement, shareholders are advised that the cautionary
announcement as previously published is now withdrawn.
Johannesburg
09 October 2003
Sponsor:
Arcay Group Limited
Date: 16/10/2003 02:02:18 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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