| Thu 1 Dec 2005, 9:56 | | Imperial Holdings Limited - Announcement of an acq |
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Imperial Holdings Limited - Announcement of an acquisition and trading update
Imperial Holdings Limited
Registration number: 1946/021048/06
Share code: IPL
ISIN: ZAE000067211
("Imperial")
Announcement of an acquisition and trading update
Acquisition of 50.1% of MCC
The board of Imperial is pleased to announce that the company has acquired 50.1%
of the MCC group of companies, trading as MCC Plant Hire and MCC Contracts for
an amount of R150 million from members of the management of MCC. In a related
transaction, Nozala Investments (Pty) Ltd ("Nozala") acquired 10% of MCC for
R36.8 million, funded by Imperial as part of its empowerment programme. A
consortium of management, led by MCC"s founder and managing director, Mr Mike
Barnes, retains the remaining 39.9%.
MCC, which was formed 30 years ago, is South Africa"s largest industrial plant
hire and contracting company focused on the construction and mining industries
with revenue of more than R600 million and approximately 900 production and
support units on its fleet, including excavators, graders, dozers, dump trucks,
face shovels, loaders and related equipment. Its primary customers are engaged
in the mining, construction and road building markets.
Nozala is a broad based, black led, women"s investment group, founded in 1996,
with investments in the services, resources and resource services sectors of the
economy.
This acquisition opens a new industry for Imperial in which its business
philosophy of ownership, leasing, renting and adding value to mobility assets
can be applied. MCC will form part of Imperial"s Leasing and Fleet Management
division.
Trading Update issued in terms of section 3.4 (b) of the JSE Limited Listings
Requirements.
Shareholders are advised that Imperial"s earnings for the six months ended 25
December 2005 are expected to be higher than those reported for the six months
ended 25 December 2004 as follows:-
Earnings per share between 20% and 40% higher
Headline earnings per share between 20% and 40% higher
The financial information in this trading statement has not been reviewed or
reported on by Imperial"s auditors. This update is based on the available
information at the time of publication.
Whilst the group is currently benefiting from favourable trading conditions in
all its divisions, the results may be affected by a number of factors, including
the implementation of IFRS as indicated in the SENS announcement published on 23
August 2005, currency movements and trading conditions until the end of the
interim reporting period.
Imperial"s interim results for the six months ended 25 December 2005 are
expected to be published on or about 2 March 2006.
Company Secretary
RA Venter
By order of the Board
1 December 2005
BEDFORDVIEW
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 01/12/2005 09:56:24 AM Produced by the JSE SENS Department
