| Tue 7 Mar 2006, 14:09 | | ADC acquires Sindele Mining Supplies and goes gold |
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ACD
ACD
ADC acquires Sindele Mining Supplies and goes gold and platinum - Media Release
Alliance Data Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1997/013402/06)
Share Code: ACD
ISIN Code: ZAE000065165
("ADC" or "the company")
Media release
7 March 2006
Alliance Data Corporation acquires Sindele Mining Supplies and goes gold and
platinum
Tuesday, 7 March 2006: AltX-listed, Alliance Data Corporation Limited (ADC),
acquired Sindele Mining Supplies for 18 million shares at R1,50 per share, for a
price of R27 million effective 1 March 2006.
Eugene de Kok, chief executive of ADC, explains, "The acquisition of Sindele
Mining Supplies enables us to diversify our business, from a supplier of IT
services to the mining industry, to offering a broader range of mining services.
Sindele has a broad client base with some of the top blue chip mines - precisely
the market in which ADC operates. We plan to market the ADC product range into
Africa."
Sindele Mining Supplies" products and services are directed at clients that
operate within the precious metals mining industry. Clients include Anglo
Platinum, Goldfields and Harmony. These markets are currently experiencing
unprecedented demand. Sindele has over 1 100 full-time employees.
Lukas van der Merwe, founder and director of Sindele, has 25 years mining
experience and will be appointed to the ADC board as an executive director. Team
members who were instrumental in the past successes of Sindele will remain
unchanged.
Sindele is a major supplier of mining services with significant contracts
already in place. There is opportunity for vast expansion and growth as a number
of mining houses and groups have not yet been approached.
Services offered include contract mining and the manufacturing, supply and
distribution of a full column grouting system and pumps. Sindele manufactures a
full column grouting system used primarily in gold and platinum mines to secure
roof bolts underground for roof support. This product was developed in-house to
be easily transportable and useable within the mining environment.
Sindele also holds three patent rights for the design of certain niche pumps
used in the mining industry, which will be explored as a possible competitive
advantage.
The business offers mining support and maintenance mainly directed at platinum
mines. ADC is expected to significantly increase its turnover after the
transaction is complete and synergies have been optimised.
The transaction will immediately elevate the group to a combined annual turnover
of approximately R80 million expected in 2006 and the transaction will also
allow Sindele to comply with its BEE objectives. It will also significantly
strengthen the mining tender platform for the group with substantial
opportunities for growth. Additionally, the transaction will take advantage of
the synergies between ADC and Sindele through selling into their respective
customer bases.
To date, Alliance Data Corporation has specialised in software development and
focused primarily on the development, installation and support of HR, Payroll,
Material Management and Time and Access solutions for clients. "These will be
instituted at Sindele and will reduce costs in the business. ADC also has
specialised HR skills which will help streamline contracts and support the
growth of our labour force," says van der Merwe.
Since ADC"s listing in March 2005, the organisation has succeeded in expanding
the services it provides to its client base in the mining industry. The
successful Time and Access Suite was installed at a number of shafts of one of
its existing chrome mine customers. ADC has also been awarded several contracts
to develop mobile (or PDA-based) solutions for gold and coal mining companies.
The company"s brand new FireFly range of Time and Access products includes some
of the most advanced functionality available, yet reliability and affordability
are key components for allowing successful implementations at clients. Some of
the features included in the product range are the ability to operate fully in
an off-line situation, improved communication capabilities, constant power and
network availability monitoring, full access control and the system also
includes biometric scanning devices.
The computer software solutions designed by ADC focus on four key areas to
provide people- and asset-management solutions to the mining industry:
- Time and attendance / access control
- Human resources/payroll
- Materials management
- Biometric security
The new products and services will enable ADC to exploit opportunities both in
South Africa and abroad.
ENDS
For further information please contact Michelle K Blumenau, Turquoise PR &
Marketing Communications, T 011 728 5004, C 083 273 9891,
turquoise@intekom.co.za
Date: 07/03/2006 02:09:04 PM Produced by the JSE SENS Department
