Wesbank Acquires Barloworld"s R1.5 Billion South A
FirstRand - Wesbank Acquires Barloworld`s R1.5 Billion South African Equipment
Leasing Book
FirstRand Limited
Incorporated in the Republic of South Africa
Registration number: 1966/010753/06
Share Code: FSR
ISIN: ZAE000014973
(`FirstRand`)
WESBANK ACQUIRES BARLOWORLD`S R1.5 BILLION SOUTH AFRICAN EQUIPMENT LEASING BOOK
1. Introduction
RMB Corporate Finance is authorised to announce that the acquisition by WesBank,
a division of FirstRand Bank Limited, (`WesBank`) of the South African equipment
finance book of Barloworld Limited (`Barloworld`) has been approved by the
Competition Tribunal (`the acquisition`) and as a result has become
unconditional.
2. Terms of the transaction
The acquisition consideration is estimated at R1.5 billion based on the expected
net asset value of finance contracts on the effective date, being 1 September
2004 (`the net asset value`). This consideration will be payable in cash and
will be adjusted for any change in the net asset value between the date of this
announcement and the effective date.
In addition, an alliance will be formed between Barloworld and Wesbank in terms
of which Barloworld will receive a share in the profits flowing from both the
existing finance contracts being sold to WesBank as well as any future new
business flows into the alliance from 1 September 2004 onwards.
3. Rationale for the transaction
This acquisition extends Wesbank`s asset-based finance portfolio. Wesbank looks
forward to providing the Caterpillar customers with innovative finance products
and excellent levels of service. Wesbank`s experience in alliances of this
nature will allow it to grow this business in the future for the mutual benefit
of FirstRand and Barloworld.
Sandton
12 August 2004
Merchant bank and sponsor to FirstRand Limited
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Date: 12/08/2004 01:47:03 PM Produced by the JSE SENS Department
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