| Mon 12 Dec 2005, 15:21 | | Sasfin Holdings Limited - Bee Group Innovent Inves |
|
Sasfin Holdings Limited - Bee Group Innovent Investment Holdings Acquires 10% of
Sasfin Bank
SASFIN HOLDINGS LIMITED
(Incorporated In The Republic Of South Africa)
(Registration Number 1987/002097/06)
("Sasfin" or "the Company")
Ordinary share code: SFN ISIN: ZAE000006565
Preference share code: SFNP ISIN: ZAE000060273
bee group innovent investment holdings acquires 10% of sasfin bank
Sasfin Holdings Limited has announced that it has been agreed that Sasfin Bank
will issue 10% of Sasfin Bank"s equity to black economic empowerment group
InnoVent Investment Holdings (InnoVent Holdings). The transaction is worth
R66,7 million and becomes effective on 1 January 2006.
InnoVent Holdings was founded by Zakhe Khuzwayo and DJ Khumbula as a black-owned
and operated financial services holding company servicing the burgeoning asset
rental market. InnoVent Holdings has two wholly owned equipment rental
subsidiaries: InnoVent Rental and Asset Management Solutions (InnoVent Rentals),
which focuses on user sourced big ticket ICT assets and Sunlyn Rentals, which
focuses on supplier sourced office equipment rental finance. Both discount with
various banks, including Sasfin Bank.
"We have spent a vast amount of time and effort in discussion with various
potential BEE partners over the last couple of years, and eventually decided to
deepen our relationship with the InnoVent group because of the positive and
constructive working relationship established with the Innovent Rentals since
its formation in November 2003, when we became a founding shareholder," says
Sasfin CEO Roland Sassoon. "We liked the business plan and were impressed by
the people behind it, so we decided to back it. Since then the relationship has
gone from strength to strength."
InnoVent Holdings" Chairman, Zakhe Khuzwayo, says the transaction holds
important strategic benefits for both parties: "InnoVent counts several blue
chip companies among its clients, and Sasfin has successfully niched itself as a
financial services group targeting entrepreneurs and business owners. We believe
this transaction gives us a much larger business footprint."
Two special purpose vehicles (SPVs) have been created, both wholly-owned by
InnoVent Holdings, for the purpose of subscribing for 11 493 756 new ordinary
shares in Sasfin Bank, equivalent to 10% of the bank"s issued share capital.
Sassoon says both parties have agreed that BEE participation in the transaction
may be expanded in due course, and plans are being made to introduce new BEE
directors to Sasfin"s board.
Sasfin will finance the BEE transaction out of its own resources by subscribing
for 66 666 cumulative redeemable preference shares at a subscription price of R1
000 each in the share capital of the two SPVs. The transaction will not have a
material effect on Sasfin"s results.
The preference shares carry a dividend equal to 75% of prime overdraft rate, and
may be redeemed - in part or in whole - after three years but no longer than 15
years. InnoVent Holdings has undertaken to remain a BEE company. On redeeming
the preference shares, it will be entitled to convert its Sasfin Bank shares
into shares in Sasfin Holdings.
Black shareholders have an effective 66,4% voting control of InnoVent Holdings
and an effective 70% economic interest in the BEE transaction, with Sasfin
owning the remainder.
Sasfin has withdrawn the cautionary announcements issued in recent months.
About InnoVent
InnoVent Holdings" black shareholders include:
- executive directors of InnoVent Holdings and InnoVent Rentals, Zakhe Khuzwayo
and DJ Khumbula;
- non-executive directors of InnoVent Holdings, Shahied Rylands and Ferhad Kahn;
- The InnoVent Foundation, a Section 21 social responsibility company;
- Royal Africa Gateway Financial Services (Pty) Limited, a strategic BEE partner
to InnoVent Rentals and Sunlyn Rentals.
Zakhe Khuzwayo and DJ Khumbula are both registered chartered accountants, CA(SA)
and both previously worked for PricewaterhouseCoopers and have spent years
working in the ICT rental market. Zakhe completed an honours degree in commerce
at the University of Natal before completing the CA(SA) Board exam. He has
considerable experience in ICT financing and besides his role as Chairman of
Innovent Holdings, he is also the Chief Financial Officer of Innovent Rentals.
DJ Khumbula holds post-graduate qualifications in accountancy and auditing from
the University of Natal and University of Johannesburg respectively and also
completed his CA(SA) Board exam. DJ has amassed a wealth of career experience
over the past 10 years. He previously worked for PricewaterhouseCoopers, CSIR
and certain other ICT Rental companies. DJ is the CEO of Innovent Rentals and
also an Executive Director of Innovent Holdings.
InnoVent Rentals specialises in big-ticket rentals and management of
predominantly ICT (information, communication and telecommunications) assets to
both the public and private sectors. The company has grown exponentially since
its formation, due in part to its ability to offer lower rental rates than the
banks through residual financing and a high degree of professionalism and
delivery. It is able to lower the cost of rentals by applying a residual value
to the asset financing structure. These assets can then be re-furbished and re-
sold on a well-established secondary market once they are out of contract or
replaced. Sunlyn Rentals specialises in supplier-sourced standard rental
solutions.
ends
ISSUED FOR : SASFIN HOLDINGS LIMITED
CONTACT : Roland Sassoon Tel: 011 809 7778 / 083 417 1100
FAX NO : 011 887 6167
E-MAIL : rsassoon@sasfin.com
WEBSITE : www.sasfin.com
CONTACT : Zakhe Khuzwayo Tel: 011 884 8274
FAX NO : 011 784 6599
E-MAIL : zkhuzwayo@innovent.co.za
WEBSITE : www.innovent.co.za
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart 011 325 4195 / 082 443 6399
FAX NO : 011 325 4199
E-MAIL : tish@tspr.co.za
DATE : 12 December 2005
Date: 12/12/2005 03:21:35 PM Produced by the JSE SENS Department
