| Mon 29 Aug 2005, 11:10 | | AECI - Chemical Services Limited concludes empower |
|
AECI - Chemical Services Limited concludes empowerment transaction with the Tiso
Group
AECI LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code: AFE
ISIN No. ZAE000000220
29 August 2005
CHEMICAL SERVICES LIMITED CONCLUDES EMPOWERMENT TRANSACTION WITH THE TISO GROUP
The sale of a 25.1 percent interest in ImproChem (Pty) Limited (ImproChem) to
the Tiso Group (Tiso) has been concluded for a total consideration of R94
million.
ImproChem is a leader in the supply of products and services to the water
management and hydrocarbon processing sectors. The company serves any industry
where water, energy and efficiency are of primary importance, including
electronics, food and beverage processing, chemicals, petroleum and refining,
steel, mining, power generation, metalworking and others. It offers on-site
solutions by providing products, services, equipment and technologies that
enhance the profitability of its customers` business operations. A licence
agreement with the Nalco Company of the USA, the global leader in water
treatment, ensures access to advanced technology and expertise.
ImproChem is a subsidiary of speciality chemicals group Chemical Services
Limited (Chemserve), a member of the AECI Group (AECI). ImproChem`s
manufacturing facilities are at Umbogintwini, south of Durban, and the company
has offices across South Africa and in Kenya, Mauritius, Namibia, Zambia and
Zimbabwe.
The agreement reached is the second empowerment transaction concluded between
AECI and Tiso and builds on the relationships established with Tiso`s
acquisition of 25.1 per cent of African Explosives Limited (AEL) in 2004. It is
in line with commitments made at that time whereby Tiso would be afforded first
option to take up future empowerment participation opportunities in the AECI
Group.
Tiso views its newly-acquired stake in ImproChem as a long-term strategic
holding and, as in the case of its involvement in AEL, a step in developing a
long-term partnership with AECI.
This is the most significant economic empowerment transaction concluded at
operating company level within Chemserve and is thus a milestone for the group.
The partnership takes effect on 1 September 2005. Nkululeko Sowazi, Mbonisi
Danisa and Peter van Kerckhoven (Alternate) from Tiso will join Louis du Toit
(Managing Director), Johan Kuhn and Mark Dytor (Chairman) on the Board of
ImproChem.
Ends.
Enquiries: ImproChem (Pty) Limited
Louis du Toit, Managing Director
011 971 0400 or e-mail: improchem@improchem.co.za
Chemical Services Limited
Frank Baker, Managing Director
011 548 4610
Tiso Group (Pty) Limited
Nkululeko Sowazi, Deputy Chairman
Fani Titi, Chairman
011 549 2400
