SAIL - PRESS RELEASE - SAIL BOARD RECEIVES FIRM OF
SAIL - PRESS RELEASE - SAIL BOARD RECEIVES FIRM OFFER
SAIL GROUP LIMITED
(Registration No. 1941/014601/06)
(Incorporated in the Republic of South Africa)
Share code: SIR
ISIN code: ZAE 000039962
(`SAIL`)
SAIL GROUP LIMITED PRESS RELEASE - SAIL BOARD RECEIVES FIRM OFFER
The Board of Directors of SAIL Group Limited, the JSE listed sport and
entertainment company today advised shareholders that it has received a firm
offer for the shares held by minority shareholders. The offer has been made by a
consortium consisting of strategic shareholder, VenFin Media Beleggings (Pty)
Ltd, a wholly owned subsidiary of VenFin Limited; Tree Tell 23 (Pty) Ltd, a
wholly owned subsidiary of SACTWU Investments Group (Pty) Ltd which owns 50%
plus one share of subsidiary SAIL Sport and Entertainment; as well as members of
the SAIL management team.
The Board of SAIL has appointed a committee consisting of independent directors
to evaluate the offer. The committee has requested Deloitte to consider a fair
and reasonable opinion and on its completion, they will make a recommendation to
the Board of Directors of SAIL on whether to present this offer to SAIL
shareholders.
`As a small cap company with limited free float of less than 15% which is lower
than the JSE`s required free float ? we started to question the viability of
remaining listed. We concluded that since we are unlikely to access equity
markets for capital, the cost of remaining listed is not justified.` explains
Selwyn Nathan, Group Chief Executive of SAIL.
The offer price for the proposed purchase is two-tiered - long term shareholders
Nedbank and Luna Corporation have been offered 40.48c per ordinary share while
all other remaining shareholders have been offered 42c per share. The weighted
average SAIL share price for the 30 days before SAIL published its first
cautionary announcement on 30 April 2004 is 35c per share. The offer represents
a substantial premium to this average.
The suspensive conditions, which are standard for a transaction of this nature,
include a positive fair and reasonable opinion from Deloitte, as well as SRP,
JSE and Competition Commission approval and finally, shareholder approval.
Additional details of the proposal will be published in the press on Wednesday 1
September 2004. The announcement of salient dates and the full details of the
transaction will be included in the circular to shareholders which will be
posted on or about 1 October 2004.
For further information contact:
Cindy Joughin
SAIL 082 451 5773
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