Illovo Sugar - Sale of Umfolozi sugar mill to a BE
Illovo Sugar - Sale of Umfolozi sugar mill to a BEE company
ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
Company Registration number 1906/000622/06
Share code ILV : ISIN ZAE000003547
(`Illovo Sugar`)
Sale of Umfolozi sugar mill to a BEE company
1 Introduction
Further to the announcement of 23 September 2004, shareholders are advised that
Illovo Sugar has entered into a sale agreement with Umvoti Transport
(Proprietary) Limited, a broad-based Black economic empowerment (`BEE`) company
(`Umvoti`), in terms of which Illovo Sugar will, subject to the approval of the
Competition Authority, sell its interests in the Umfolozi sugar mill
(`Umfolozi`), (`the transaction`) with effect from midnight on 31 March 2005.
The transaction will secure further BEE participation in the South African sugar
milling industry.
2 Financial effects
The transaction will have a favourable effect on Illovo Sugar`s headline
earnings. The impact of the transaction on net assets and net tangible assets
per share is not significant.
3 Information on Umfolozi
Umfolozi is located on the north coast of KwaZulu-Natal, adjacent to Mtubatuba.
Annually the mill crushes approximately 1.3 million tons of cane and produces
around 150 000 tons of sugar, constituting some 6% of South Africa`s annual
sugar production and 8% of the annual sugar output of the Illovo Sugar group.
Currently Umfolozi employs 244 people in its sugar milling operations.
Mount Edgecombe
11 February 2004
Sponsor
Cazenove
Date: 11/02/2005 02:46:42 PM
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