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Faritec Holdings Limited - Disposal of IT contracting business
Faritec Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/004872/06)
(Share code: FRT)
(ISIN number: ZAE000016838)
(`Faritec`)
Disposal of IT contracting business
Introduction
Java Capital is authorised to announce that Faritec entered into an agreement on
9 September 2004 with Paracon Holdings Limited (`Paracon`) to dispose of its IT
contracting business (`the business`) for R6 333 000 payable in cash on
fulfilment of the conditions precedent referred to below. The consideration is
subject to possible downward adjustment by a maximum of R452 200.
Rationale
The business is no longer core to Faritec, which is focusing on managed services
style revenue streams. It is anticipated that the proceeds from the sale will be
invested into the further growth of Faritec`s managed services, assisting the
company to become the leader in the managed services market in South Africa.
Terms and conditions
Faritec has undertaken not to compete with the business for a period of forty-
eight (48) months. In addition, Faritec has given warranties and indemnities
applicable to a transaction of this nature. The disposal is subject to various
conditions precedent including inter alia the approval of the competition
authorities.
Financial effects
The pro forma financial effects of the disposal set out in the table below have
been prepared for illustrative purposes only, to provide information on how the
disposal may have impacted on Faritec. Because of their nature, the pro forma
financial effects may not give a fair reflection of Faritec`s financial position
after the disposal or the effect of the disposal on future earnings.
Before After Change
cents cents %
Earnings per share (0,9) (0,8) 11,1
Headline earnings per share (0,9) (0,8) 11,1
Net asset value per share 66,6 70,0 5,1
Notes:
1 The earnings, headline earnings and net asset value per share, as set out in
the `Before` column of the table, are based on Faritec`s interim results for the
six months ended 31 December 2003.
2 The earnings per share figure, as set out the `After` column of the table, is
based on the following assumptions:
- the effective date of the disposal was 1 July 2003;
- interest on the cash proceeds has been calculated at an after tax interest
rate of 5,11%; and
- the weighted average number of shares in issue was 129 629 000.
3 The historical net asset value per share, as set out in the `After` column of
the table, is based on the following assumptions:
- the effective date of the disposal was 31 December 2003; and
- there were 129 629 000 shares in issue.
Johannesburg
10 September 2004
Attorneys
Werksmans Incorporated
Registration number 2000/005164/07
Sponsor
Java Capital (Proprietary) Limited
Date: 10/09/2004 05:15:32 PM Produced by the JSE SENS Department
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