Rentsure - Disposal of Alnet (Pty) Limited and further cautionary announcement
RENTSURE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1946/023539/06)
Share code: RNT ISIN: ZAE000012811
(`Rentsure` or `the company`)
DISPOSAL OF ALNET (PTY) LIMITED AND FURTHER CAUTIONARY ANNOUNCEMENT
1. Introduction
Further to the announcement dated 25 November 2004, shareholders are notified
that Alnet (Proprietary) Limited (`Alnet`) and Alnet (Namibia) (Proprietary)
Limited (`Namco`) have entered into an agreement dated 15 December 2004 with
Multiknit 2000 (Proprietary) Limited (`the purchaser`), relating to the disposal
of the businesses of Alnet and Namco (`the disposal`). Namco is a wholly-owned
subsidiary of Alnet, and Alnet is a wholly-owned subsidiary of Rentmeester
Assurance Limited (`Rentmeester`), which is a 70% held subsidiary of Rentsure.
2. Terms of the disposal
2.1 Disposal consideration
Alnet and Namco will dispose of their businesses, as going concerns, to the
purchaser for an aggregate consideration equal to R34 000 000,00 (thirty four
million Rand) and the face value, at the closing date, of certain of the
liabilities of Alnet and Namco (`the disposal consideration`).
In the announcement dated 25 November 2004 shareholders were notified of the
directors` intention to proceed with the orderly winding-up of the company. The
disposal consideration will therefore be taken into account in determining
distributions to shareholders in anticipation of the winding-up.
2.2 Warranties
Alnet and Namco have given warranties, normal for a transaction of this nature,
to the purchaser.
2.3 Rationale for the disposal
In the opinion of the board of directors of Rentmeester, its investment in
Alnet, which conducts the business of manufacturing and distributing netting,
decorative shade cloth and synthetic textiles, is not suitable to the core
business of a life assurance company.
2.4 Conditions precedent
The disposal is subject to, inter alia, the fulfilment of the following
conditions precedent:
* the purchaser completing a due diligence investigation into the business and
affairs of Alnet and Namco and being satisfied with the outcome thereof;
* the Competition Commission approving of the disposal;
* Rentmeester, in its capacity as the shareholder of Alnet approving of the
transaction in terms of the provisions of section 228 of the Companies Act 61 of
1973; and
* approval by the shareholders of Rentsure in accordance with the Listings
Requirements of the JSE Securities Exchange South Africa (`JSE`), to the extent
necessary.
3. Documentation and further cautionary announcement
A circular, which is subject to the approval of the JSE, will be sent to
shareholders in due course. The circular will contain details of the disposal
and will incorporate a notice of general meeting of Rentsure shareholders.
As the financial effects of the disposal have not yet been disclosed,
shareholders are advised to continue to exercise caution when dealing in their
Rentsure shares until such time as the financial effects have been disclosed.
Johannesburg
20 December 2004
Corporate advisor
BRAVURA
Sponsor
BRIDGE CAPITAL
Legal advisor
ROODT Inc.
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