| Wed 28 Jul 2004, 8:38 | | DISPOSAL OF A FISCHER & KRECKE 34DF FLEXOGRAPHIC |
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ALEX WHITE HOLDINGS LIMITED - DISPOSAL OF A FISCHER & KRECKE 34DF FLEXOGRAPHIC
PRESS
ALEX WHITE HOLDINGS LIMITED
(Registration number 1949/035016/06)
Share code: ALX
ISIN: ZAE 000000386
(`Alex White` or `the company`)
DISPOSAL OF A FISCHER & KRECKE 34DF FLEXOGRAPHIC PRESS
1. Introduction
Shareholders are advised that, subject to the approval of the JSE Securities
Exchange South Africa and certain conditions precedent, Cape Wrappers
(Proprietary) Limited (`Cape Wrappers`), a wholly owned subsidiary of the
company, has entered into an agreement (`the disposal agreement`) dated 28 June
2004, in terms of which it sold its Fischer & Krecke 34DF plus all its spare
parts (`the 34DF`) to K R Horsens Handels- & Agenturvirksomhed APS(`the
purchasers`).
2. Terms of the disposal
2.1 Rationale
As a result of the purchase of the Fischer & Krecke 16s press, which became
operational in June 2004, the 34DF has become superfluous to the requirements of
the company. All existing jobs that were done on the 34DF will be done on the
Fischer & Krecke 16s press and, due to the innovations on the new press, it has
substantially more production capacity than the 34DF.
The sale of the 34DF will further assist the company to reduce the borrowings
required to finance the purchase of the Fischer & Krecke 16s press.
The board, therefore, approved the sale the 34DF subject to, inter alia, the
conditions precedent set out in 2.5
2.2 Subject matter of the disposal
In terms of the disposal agreement Cape Wrappers sold the 34DF to the
purchasers.
2.3 Disposal consideration and payment
The disposal consideration is EUR 585 000, which converted at the rate ruling on
the effective date amounts to R 4 178 850 to be settled as follows:
2.3.1 90% deposit by 10 July 2004 and;
2.3.2 10% when the press is installed and tested at its final
destination.
2.4 Effective date
The effective date of the disposal is 30 June 2004.
2.5 Conditions precedent
The disposal is subject to inter alia the following outstanding suspensive
conditions:
2.5.1 that Cape Wrappers will supervise the removal of the press from
its premises;
2.5.2 that Cape Wrappers will pay for the packing of the press into
containers prior to shipping, the cost of which is estimated at R
273 000; and
2.5.3 Exchange control approval of the disposal.
3. Application of sale proceeds
The proceeds of the disposal will be utilised to reduce the interest bearing
borrowings of the Alex White group.
4. Financial effects
The financial effects of the implementation of the disposal and the distribution
are set out below. The following table has been prepared for illustrative
purposes only and is based on the published interim results of the company for
the six months ended 31 December 2003.
Before the After the Percentage
disposal disposal change
(cents) cents) %)
Earnings per ordinary share 12,5 20,6 64,8%
Headline earnings per share 11,9 12,3 3,36%
Net asset value per 209 217 3,83%
ordinary share
Net tangible asset value 204 212 3,92%
per ordinary share
Assumptions
The transaction takes place on the 1 July 2003;
Tax at 30% is applied to the net profit on sale of the fixed asset;
The net profit on the sale before tax amounts to R 1 999 000; and
The ruling interest rate is 11,7%.
Johannesburg
27 July 2004
Sponsor
Sasfin Corporate Finance
a Division of Sasfin Bank Limited
Date: 28/07/2004 07:00:07 AM
Produced by the JSE SENS Department
