Reunert Limited - Press Release: Reunert Buys 50% Stake In African Cables From
Release Date: 13/07/2004 10:03:15 Code(s): RLO RLZP
REUNERT LIMITED - PRESS RELEASE: REUNERT BUYS 50% STAKE IN AFRICAN CABLES FROM
PIRELLI
REUNERT LIMITED
(Incorporated in the Republic of South Africa)
Reg. No. 1913/004355/06
ISIN : ZAE000005930
Share code : RLZP
(`Reunert`)
PRESS RELEASE: REUNERT BUYS 50% STAKE IN AFRICAN CABLES FROM PIRELLI
JSE Securities Exchange South Africa listed electrical engineering and
electronics group Reunert has bought the 50-percent stake it does not already
own in African Cables (Pty) Ltd from Pirelli Cables and Systems for R167
million. The deal is subject to regulatory approvals, which should be obtained
before its financial year-end in September.
African Cables manufactures energy cables ranging from low voltage pvc cables to
super high tension cables. The main manufacturing facility is located in
Vereeniging. Additional manufacturing capacity exists in Harare, Zimbabwe at
CAFCA which is 73% owned by African Cables.
`This is another significant step in expanding Reunert`s interests in the
electrical engineering sector. We foresee meaningful benefits deriving from this
move. A common shareholder base makes close co-operation amongst the companies
in the electrical engineering division feasible,` says Reunert chief executive
Gerrit Pretorius.
Reunert`s electrical engineering division consists of African Cables,
telecommunications cable manufacturer ATC and Circuit Breaker Industries (CBI).
The division has contributed 27% of the group`s profits in the first six months.
Reunert`s subsidiary CBI recently announced that it is entering the Australian
market by buying Heinemann Electric for R25-million.
In addition, Reunert last month announced its intention to acquire 10 percent of
its ordinary shares at R25 per share by way of a scheme of arrangement.
Woodmead
13 July 2004
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited) CORPORATE FINANCE
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