SEARDEL INVESTMENT CORPORATION LIMITED - DISPOSAL OF PARAPROP UNITS
SEARDEL INVESTMENT CORPORATION LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
ISIN NUMBER: ZAE 000029815: SHARE CODE SER
ISIN NUMBER: ZAE 000030144: SHARE CODE SRN
SEARDEL; SEARDEL-N
DISPOSAL OF PARAPROP UNITS
INTRODUCTION
Shareholders are advised that Seardel has concluded an agreement with Madison
Property Fund Managers (Pty) Limited (`Madison`) in terms of which Seardel will
dispose of all of its linked units units in Paramount Property Fund Limited
(`Paraprop`), being 6 031 600 `A` Paraprop units and 1 951 400 `B` Paraprop
units (`the Paraprop units`) to Madison or its nominee with effect from 1 July
2004 (`the disposal`).
RATIONALE FOR THE DISPOSAL
The holding of listed property securities such as the Paraprop units is not core
to Seardel`s business and accordingly Seardel wish to dispose of the Paraprop
units.
TERMS
The aggregate purchase consideration for the Paraprop units will be R24 818 260
payable in cash and allocated as follows:
- R21 110 600 in respect of the `A` units (comprising R3,50 per `A` unit);
- R3 707 660 in respect of the `B` units (comprising R1,90 per `B` unit).
Seardel will use the proceeds from the disposal to reduce interest bearing debt.
Notwithstanding the effective date of the transaction, the units are being sold
ex the distribution to be made to Paraprop unitholders in July 2004, in respect
of the six month period ending 30 April 2004, on the basis that this
distribution will still be paid to Seardel.
If Madison (or the nominated purchaser) makes an offer to the shareholders in
Paraprop to acquire their units in Paraprop at a price higher than the R3,50 per
`A` unit or R1,90 per `B` unit paid to Seardel within 12 months of the effective
date, then Madison (or the nominated purchaser) shall pay Seardel the difference
between that offer price and the purchase price per `A` and `B` unit paid to
Seardel in terms of the disposal.
FINANCIAL EFFECTS
The pro forma financial effects of the transaction on the historic earnings and
headline earnings per share of Seardel and on the historical net assets and net
tangible assets per share is insignificant.
SPONSOR: JAVA CAPITAL
6 July 2004
Date: 06/07/2004 11:41:47 AM Produced by the JSE SENS Department
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