| Fri 21 Apr 2006, 15:59 | | Cape Empowerment Trust Limited - Press release |
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CAE
CAE
Cape Empowerment Trust Limited - Press release
Cape Empowerment Trust Limited
(Incorporated in the Republic of South Africa)
Registration number 1998/014606/06
JSE share code: CAE ISIN: ZAE000016952
(CET)
CAPE EMPOWERMENT TRUST SECURES 6% OF GRAND PARADE INVESTMENTS LIMITED
Cape Town, 21 April 2006
Cape Empowerment Trust (CET) today confirmed that it had finalised two major
deals, the net effect of which would take its shareholding in Grand Parade
Investments Limited (GPI) up to 6%.
GPI holds a significant stake in SunWest, which owns the luxury Table Bay Hotel
and GrandWest, South Africas leading casino operation. It also holds a stake
in Thuo Western Cape, a successful limited payout machine (LPM) operator. The
Worcester casino, in which GPI has a substantial equity interest, opens in
September 2006. In the six months to end December 2005, GrandWest achieved
growth of 22% in revenue, while EBITDA of R290-million grew 27%.
This news follows on the release of CETs financial results (to end 31 December
2005), where it announced an increase in profits from R7,923,000 to R19,253,000,
resulting in growth of 145 % in diluted earnings per share.
CEO Shaun Rai said that in the first transaction, CET had acquired a 40%
exposure to Western Cape Womens Investment Forum (Wecwifs) GPI shares, paying
R6,492 million for an effective 40% stake. Wecwif has a shareholding of
2,164,000 GPI shares, which in turn gives CET an additional shareholding in GPI
of 865,000 shares.
In addition to this, we have also acquired a 47% stake in BLRT Investments
Limited (BLRT) for R7-million. BLRT holds 2 357 000 shares in GPI which
translates into an additional stake for CET of 1,107,790 shares in GPI.
Though CETs 23% holding in Sancino, the company already owns 2,018,000 shares
in GPI. That means that our new total effective shareholding in GPI has now
risen to 3,991,390 shares, or some 6%.
In a related issue, Rai said that CET had succeeded in obtaining a 53% stake in
Sancino in January at a time when Sancino was indebted to Sanlam for
approximately R23-million. Sanlam subsequently converted the debt into equity
and diluted all ordinary shareholders, including CET.
As a result of the two transactions with Wecwif and BLRT, CET now holds a
similar effective shareholding in GPI, but one which was obtained at a
significantly lower price than would have been the case had it participated in
the debt reduction exercise at Sancino level.
In addition, our investment in Sancino now means that we also hold an effective
23% in Mills Litho and our effective interest in the cash balances of BLRT and
Wecwif resulting from our subscription for new shares in those entities amounts
to some R6-million.
We are now able to put Sancino shareholders, who converted into CET, in a more
favourable position than that which was indicated to them at the time of the
original purchase.
CET has achieved a 47% return on assets over the last five years and in the last
calendar year, achieved a 123% return on assets.
ENDS
For further information, please contact Shaun Rai on 082 902 9809.
Note to Editors
CET is a Western Cape-based black-controlled listed company specialising in
property, gambling and financial service providers. It has a controlling
shareholding in Dynamic Cables Limited. It was listed in 1998 in the Financial
Instruments Sector.
The shareholding in CET includes seven community trusts active in areas such as
black education.
During the financial year ended 31 December 2005, CETs profits grew from
R7,923,000 to R19,253,000, resulting in diluted earnings per share growing by
145%.
GPI is a Western Cape-based empowerment shareholder in the gambling industry,
with significant shareholdings in SunWest, which owns the Table Bay Hotel and
the GrandWest Casino, and Thuo Western Cape, a limited payout machine (LPM)
operator. The Worcester casino, in which GPI has a substantial stake, opens in
September 2006.
Date: 21/04/2006 03:59:06 PM Produced by the JSE SENS Department
