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PICK `n PAY/ PIKWIK - ANNOUNCEMENT
PICK `N PAY STORES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1968/008034/06)
Share Code: PIK ISIN: ZAE000005443
("PICK `n PAY")
PICK `N PAY HOLDINGS LIMITED(Incorporated in the Republic of South Africa)
(Registration number 1981/009610/06)Share code: PWK ISIN code:
ZAE000005724("PIKWIK")
Sale of Pick `n Pay Stores Limited"s interest in Boardmans, a division of Pick
`n Pay Retailers (Proprietary) Limited ("Boardmans")
1. Terms of the disposal
Investec Bank Limited is authorised to announce that Pick `n Pay has sold its
interest in Boardmans, ("the sale") to Edgars Consolidated Stores Limited
("Edcon").
The transaction comprises the assignment of all store, warehouse and office
leases, the sale of stock, fixed assets, prepayments, and trademarks and other
intellectual property and the transfer of the employees and the employee related
liabilities.
The sale proceeds amounts to approximately R94 million and is based on the net
asset value of the above related assets and liabilities of Boardmans on the
closing date plus a goodwill payment. The closing date will be 1 April 2004,
provided the conditions precedent have been fulfilled prior to 15 March 2004,
failing which it will be the third Monday of the month immediately following the
fulfilment of the last of the conditions precedent.
The sale is subject to the following conditions precedent:
* approval of the transaction by the competition authorities in terms of the
Competition Act, No. 89 of 1998; and
* conclusion of the assignment or sub-letting of certain lease agreements to
Edcon.
Pick `n Pay has given warranties and undertakings to Edcon that are normal in a
transaction of this nature.
2. Rationale for the disposal
Boardmans operates in the homeware market selling kitchenware, linens and
furniture all of which have a strong fashion element attached thereto, which is
not considered to be a core competency of the Pick `n Pay Group.
This sale enables the Pick "n Pay Group to free up management time and resources
to enable it to focus on its core fast moving consumer goods retail activities.
3. Financial effects
The pro forma financial effects of the disposal of Boardmans are not considered
to be material to Pick `n Pay or Pikwik shareholders.
Sandton
12 December 2003
Merchant bank and Sponsor to Pick `n Pay
Transaction advisor to Stores Limited
Pick `n Pay Stores Limited
Investec Corporate Finance Investec Bank Limited
Date: 12/12/2003 11:41:03 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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