| Fri 30 Jul 2004, 8:34 | | FURTHER ANNOUNCEMENT REGARDING INVESTEC PLC"S SAL |
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INVESTEC PLC - FURTHER ANNOUNCEMENT REGARDING INVESTEC PLC`S SALE OF ITS STAKE
IN INVESTEC BANK (ISRAEL) LIMITED
Investec plc
(Incorporated in the United Kingdom)
(Registration number 3633621)
Share code: INP ISIN code: GB0031773103
Further announcement regarding Investec plc`s sale of its stake in Investec Bank
(Israel) Limited
Further to the announcement released on 17 June 2004, Investec plc, the ultimate
shareholder of Investec Bank (Israel) Limited (`the Bank`), entered into an
agreement with The First International Bank of Israel (`FIBI`) whereby it has
agreed to sell its 80.28% stake in the Bank to FIBI. This disposal falls to be
classified as a class 2 disposal under the Listing Rules of the UK Listing
Authority.
The Bank is listed on the Tel Aviv Stock Exchange and, in addition to private
and corporate banking services, offers professional trading, execution, clearing
and custodian services to Israeli clients and complements its trading and
execution activities with the provision of research.
The consideration will be settled in cash and will, following FIBI`s due
diligence review, be computed as being 80.28% of the book net asset value of the
Bank at 30 June 2004 (`book NAV`), (Investec plc`s share being approximately
GBP47 million), subject to adjustments relating to the valuation of the Tel Aviv
and Jerusalem properties (`the Bank`s properties`), provision for employment and
related costs, adjustments arising from the due diligence, and for any
distributions made prior to completion (`the adjusted NAV`).
Should the aggregate adjustments to the consideration (excluding any adjustment
relating to the Bank`s properties and certain provisions for employment and
related costs) exceed approximately GBP5 million, then FIBI is entitled to
either terminate the agreement or to proceed with the acquisition with the
purchase price, being reduced by such GBP5 million.
Should the agreed valuation of the Bank`s properties be lower than the book
value thereof (approximately GBP7.5 million), Investec plc has the option of
either accepting a reduced purchase price or acquiring either one or both of the
properties, at a value between the book value thereof and the agreed valuation
for the relevant property, and entering into a 10-year lease with FIBI on fair
market terms, with a five year break clause for that part of the building
occupied by the Bank. Similarly, should there be a disagreement between the
parties relating to the provision required in respect of customer advances,
Investec has the right to purchase the underlying debt at book value or to
indemnify FIBI including placing a deposit with the Bank equal to the amount of
the additional provision sought by FIBI.
Completion of the sale is conditional upon the approval of the relevant
regulatory authorities in Israel, South Africa and the United Kingdom, including
the Bank of Israel and the Israeli antitrust authorities.
In the consolidated accounts of the combined Investec group (comprising Investec
plc and Investec Limited) as at 31 March 2004, Investec plc`s share of the
Bank`s operating profit after taxation but before exceptional items and
amortisation of goodwill amounted to GBP1.9 million and its share of
shareholders` funds was approximately GBP48 million.
The proceeds will be retained by Investec plc and used for general corporate
purposes in its operating subsidiary companies.
If you have any questions in this regard please contact the Investor Relations
division on +27 11 286 7070 or investorrelations@investec.co.za
30 July 2004
Sponsor
Investec Bank Limited
Date: 30/07/2004 08:00:06 AM Produced by the JSE SENS Department
