JCI LIMITED- PARTICIPATION IN PROPOSED RIGHTS OFFER BY WESTERN AREAS LIMITED
JCI Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1894/000854/06)
Share code: JCD ISIN: ZAE000039681
Existing Debenture code: JCDD ISIN: ZAE000039699
("JCI")
PARTICIPATION IN PROPOSED RIGHTS OFFER BY WESTERN AREAS LIMITED ("WAL")
Shareholders are referred to the accompanying press announcement by WAL
regarding a proposed rights offer to raise R400 million ("the WAL rights
offer").
With regard to the WAL rights offer:
- JCI has agreed to follow its rights entitlement in respect of its 35,6%
shareholding in WAL;
- JCI proposes to underwrite the WAL rights offer, as to a maximum
underwriting commitment of R159,6 million, on the basis that Allan Gray Ltd,
acting on behalf of certain clients who own 24,5% of WAL, have undertaken to
follow the rights accruing to these clients;
- the rights offer price will be determined not less than seven days before the
last day to register for the WAL rights offer;
- JCI"s participation in the WAL rights offer is subject to various conditions
precedent and regulatory approvals which are set out in the accompanying
announcement;
- JCI has undertaken to provide a bridging loan of R400 million to WAL, on the
basis that the bridging loan will be repaid out of the funds raised from the WAL
rights offer. The loan will be for a period of up to six months, pending the WAL
rights offer, carrying an interest rate of 1,5% above prime, and is unsecured.
JCI"s participation in the WAL rights offer is consistent with its strategy as a
specialised resource finance house of developing relationships with and
supporting its portfolio of quality, wealth-creating investments, among them
being its shareholding in WAL.
The WAL rights offer will have no effect on JCI"s net asset value and net
tangible asset value per share as WAL is accounted for as an investment in JCI"s
annual financial statements. Initially, the WAL rights offer will be earnings
dilutionary to JCI as WAL is currently not paying dividends.
Johannesburg
5 February 2004
Corporate adviser
NEWFOUND
Sponsor
Sasfin
Coporate Finance
A Division of Sasfin Bank Limited
Attorneys
TABACKS
Date: 05/02/2004 05:21:02 PM
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