| Wed 16 Feb 2005, 16:13 | | - Acquisition of interests held by Caesars South A |
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Peermont - Acquisition of interests held by Caesars South Africa Incorporated
Peermont Global Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/004449/06)
Share code: PTG
ISIN: ZAE000058053
(`Peermont Global`)
ANNOUNCEMENT IN RESPECT OF THE ACQUISITION OF INTERESTS HELD BY CAESARS SOUTH
AFRICA INCORPORATED
CIRCULAR TO SHAREHOLDERS POSTED TODAY
The circular regarding Peermont Global`s proposed acquisition of the 25% equity
stake held by Caesars South Africa Incorporated (`CSA`) in GRER Holdings
(Proprietary) Limited (`GRERH`)and the 50% stake CSA holds in Caesars Global
Resorts Management (Proprietary) Limited (`the transaction`) was posted to
shareholders today.
REVISION OF FINANCIAL EFFECTS
Shareholders are referred to the detailed terms announcement released on 28
December 2004.
The unaudited pro forma financial effects after the transaction as disclosed in
the announcement reflected figures of 14,3 cents, 19,2 cents, 98,5 cents and
10,2 cents for basic earnings per share (`EPS`), headline earnings per share
(`HEPS`), net asset value (`NAV`) per share and tangible NAV (`TNAV`) per share
respectively, for the six months ended 30 June 2004. The unaudited pro forma
financial effects of the transaction have been revised in order to better
reflect:
- the aggregate hedging rand/dollar exchange rate achieved;
- the capitalisation of goodwill based on accounting policies applicable at
30 June 2004; and
- fair value accounting of land and buildings.
The revised financial effects are presented in the table below and are included
in the circular posted to Peermont Global shareholders today.
Before the After the Change (%)
transactio transactio
n (cents)1 n (cents)
EPS 20,8 12,42 (40,4)
HEPS 22,9 19,03 (17,0)
NAV per share 235,3 232,24 (1,3)
TNAV per share 199,7 56,55 (71,7)
Notes:
1. The figures included in the `Before the transaction` column are the figures
as reflected in the reviewed interim financial results of Peermont Global for
the six months ended 30 June 2004.
2. Includes Peermont Global`s increased share of the earnings of GRERH and
additional management fees, net of the costs of associated funding raised.
3. HEPS after the transaction, adjusted for the amortisation of goodwill
associated with the transaction, plus non-recurring transaction costs. Non-
recurring transaction costs have the effect of reducing HEPS by 3,0 cents per
share. Should these costs be ignored, HEPS would be 22,0 cents per share.
4. The reduction in NAV per share is primarily a result of the non-recurring
transaction costs.
5. Tangible NAV per share has been calculated after adjusting for estimated
goodwill and the intangible asset in respect of the transaction.
6. The rand/dollar exchange rate assumed in calculating the above financial
effects is R5,94/dollar, which rate was based on the aggregate hedging
rand/dollar exchange rate.
REVISION OF SALIENT DATES AND TIMES
Further to the announcement dated 28 December 2004, Peermont Global shareholders
are advised of the revised salient dates and times, as set out in the circular
posted to shareholders today.
2005
Last day to lodge form of proxy for general Monday,7 March
meeting by 10:00 on
General meeting of shareholders to be held at Wednesday, 9 March
10:00 on
General meeting results announcement released Wednesday, 9 March
on SENS on
General meeting results announcement and
financial results for the year ended 31 Friday,11 March
December 2004 published in certain South
African newspapers on
Notes:
These dates and times are subject to change. Any such change will be released
on SENS and published in certain South African newspapers. Any reference to
time is a reference to South African time.
Bryanston
16 February 2005
Merchant bank and lead sponsor
Rand Merchant Bank Corporate Finance
(A division of FirstRand Bank Limited)
Sponsor
Standard Bank
Attorneys
Webber Wentzel Bowens
Reporting accountants
KPMG Inc.
Date: 16/02/2005 03:45:59 PM
Produced by the JSE SENS Department
