|
Remgro/ KTI - The Acquisition By Remgro Of A 37% Interest In KTI
Remgro Limited Kagiso Trust Investments
(Incorporated in the (Proprietary) Limited
Republic of South Africa) (Incorporated in the
(Registration number: Republic of South Africa)
1968/006415/06) (Registration number
Share code: REM 1993/007845/07)
ISIN: ZAE000026480 ("KTI")
("Remgro")
THE ACQUISITION BY REMGRO OF A 37% INTEREST IN KTI
1. INTRODUCTION
Remgro is pleased to announce that it has, subject to the necessary approval
from the Competition Authorities, acquired 37% of the issued ordinary shares of
KTI in equal shares from the Liberty Life and Nedbank groups for an aggregate
consideration of R450 million. The acquisition is effective from 1 August 2005.
2. THE KAGISO GROUP
The Kagiso Charitable Trust (the "Kagiso Trust"), which owns 51% of KTI, is a
broad-based charitable organisation that was formed by the South African Council
of Churches in the mid 1980s. It was established to provide assistance to
underprivileged communities with a focus on education, healthcare and general
poverty alleviation. The ultimate beneficiaries of the Kagiso Trust are the
projects and communities that it supports. The Kagiso Trust is generally
recognised as one of South Africa"s leading broad-based black economic
empowerment groups and its Trustees and Patrons include Archbishop Emeritus
Desmond Tutu and Ms Zanele Mbeki.
KTI was formed in December 1993 by the Kagiso Trust as an investment vehicle to
generate sustainable, long-term financial support to the Kagiso Trust for the
purpose of community development and to achieve true economic empowerment
through active, operational involvement in underlying strategic investments.
Today, KTI is an investment holding company with assets in excess of R1.6
billion that provides strategic and operational support to its partners. It
adopts a proactive approach to investments, with a strong emphasis on business
development and strategic positioning. Its current investment portfolio includes
companies such as Kagiso Media Limited (in which it has a 44% stake),
Metropolitan Holdings Limited, Waco Africa Limited and Bytes SA (Proprietary)
Limited.
The Chairman of KTI is Eric Molobi, who is also a non-executive director of
Remgro. The Chief Executive Officer of KTI is Johnson Njeke, a former partner at
PricewaterhouseCoopers Incorporated and currently a non-executive director of
Mittal Steel SA Limited and a member of the NM Rothschild SA (Proprietary)
Limited board, amongst others. Johnson is also the past Chairman of The South
African Institute of Chartered Accountants and served on the Audit Committee of
the National Treasury.
3. RATIONALE
KTI is an established empowered company with a sound investment track record,
which, when combined with Remgro"s business expertise, will create a value-
enhancing partnership. The Board of Remgro believes that KTI has created an
investment portfolio, and has an investment strategy, that is complementary to
that of Remgro and which will appeal to the investment community.
The acquisition will also crystallise the opportunity for Remgro and KTI to
jointly pursue investment opportunities with their combined industry expertise,
strengthened by the empowerment credentials of KTI.
4. FURTHER ANNOUNCEMENT
Remgro shareholders are advised that further details regarding the acquisition
will be announced once it has become unconditional, which includes obtaining the
necessary approval from the Competition Authorities.
Stellenbosch
29 September 2005
Investment Bank to Remgro Legal advisers
Standard Bank Webber Wentzel Bowens
Sponsor
RAND MERCHANT BANK
(A division of FirstRand Bank
Limited)
Date: 29/09/2005 04:01:23 PM
Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
