Excellerate Holdings Limited - DISPOSAL OF SECURIPARK (PROPRIETARY) LIMITED
(`SECURIPARK`)
Excellerate Holdings Limited
(Registration number 1997/009884/06)
(Incorporated in the Republic of South Africa)
Share code: EXL ISIN: ZAE000026092
Share code: EXLD ISIN: ZAE000044145
(`Excellerate`)
DISPOSAL OF SECURIPARK (PROPRIETARY) LIMITED (`SECURIPARK`)
1. Introduction
Shareholders are advised that Excellerate and its wholly-owned subsidiary
Interpark SA (Proprietary) Limited (`Interpark`) have entered into an agreement,
dated 14 July 2005 (`the agreement`), with Mr Deon Pretorius (`the purchaser`).
In terms of the agreement, Excellerate and Interpark will dispose of all their
shares in and claims against Securipark (currently a wholly-owned subsidiary of
Excellerate) (`the disposal`).
The disposal will be effective from 1 July 2005 following the fulfillment of the
conditions precedent set out in paragraph 6 below.
2. Nature of business
Securipark provides security and security related services within parking and
corporate environments. It provides a holistic service by combining parking
management expertise with the guarding, patrol and access control expertise of
carefully selected, trained and screened security personnel.
3. Rationale
As Securipark is not considered to be a core business, the disposal is a result
of Excellerate`s long term strategy to focus on its core businesses.
4. Consideration
The total consideration for the disposal is R1.5 million. Of the total
consideration, R100 000 will be settled in cash upon fulfillment of the
conditions precedent referred to in paragraph 6 below (`the closing date`). The
remaining amount of R1.4 million will be paid in 36 equal monthly instalments
commencing from the closing date. The outstanding amount of the consideration
will accrue interest at prime less 2%. The consideration received will be used
to reduce current borrowings.
5. Financial effects
The financial effects of the disposal on Excellerate`s earnings and headline
earnings per share for the six months ended 31 December 2004 and net asset value
and tangible net asset value per share as at 31 December 2004, are not material
and have, therefore, not been disclosed.
6. Conditions precedent
The disposal is subject to inter alia, the cession of the parking portion of
parking contracts in respect of the provision of parking management services to
Interpark or agreement to the joint management by Securipark and Interpark of
such contracts and the obtaining of, where applicable, relevant regulatory
approvals.
7. Related party transaction
As the purchaser is a director of Securipark, the disposal is a `small related
party transaction` in terms of the JSE Limited`s Listings Requirements.
Excellerate has, therefore, appointed Grant Thornton (subject to approval by the
JSE Issuer Services Division) as an independent professional expert to review
the terms and conditions of the disposal to ensure that they are fair and
reasonable to Excellerate shareholders. Shareholders will be informed in due
course of the outcome of this review.
Johannesburg
20 July 2005
Sponsor
Nedbank Capital
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