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CAE
CAE
Cape Empowerment Trust - Acquisition of interests in Grand Parade Investments
Limited
Cape Empowerment Trust Limited
(Incorporated in the Republic of South Africa)
Registration number 1998/014606/06
JSE share code: CAE ISIN: ZAE000016952
("Cape Empowerment Trust" or `the company `)
ACQUISITION OF INTERESTS IN GRAND PARADE INVESTMENTS LIMITED ("GPI")/
1. Introduction
Cape Empowerment Trust has entered into two further agreements, the net
effect of which is that the company has now secured a 6% effective interest
in GPI.
As was previously announced Cape Empowerment Trust obtained a 53% interest
in Sancino Projects Limited ("Sancino") in January 2006 at a time when
Sancino was indebted to Sanlam Life Insurance Limited, which debt was
subsequently converted into equity and resulted in the dilution of all
ordinary shareholders in Sancino, including Cape Empowerment Trust, whose
interest was diluted to approximately 23%. Sancino holds a 13% interest in
GPI.
2. The acquisition
2.1 Rationale and background to the acquisition
Cape Empowerment Trust is a Western Cape-based black-owned investment
holding company, the shares of which are listed on the JSE. Its
investments lie mainly in the telecommunications and utilities sector,
but includes investments in the gaming, printing, security and
property industries.
GPI holds a significant stake in SunWest Limited, which owns the Table
Bay Hotel and GrandWest Casino, a leading South African casino
operation. It also holds a stake in Thuo Western Cape, a successful
limited pay-out machine operator. The Worcester casino, in which GPI
has a substantial equity interest, opens in September 2006. In the
six months to 31 December 2005, the GrandWest Casino achieved 22%
growth in revenue and 27% growth in EBITDA.
Through its shareholding in Sancino Cape Empowerment Trust has an
interest in GPI, which is now increased and enhanced by the
acquisitions set out below.
2.2 Terms of the acquisitions
Cape Empowerment Trust has acquired approximately 40% of the Western
Cape Women"s Investment Forum ("Wecwif") which holds 2 164 000 GPI
shares (3.2% of GPI) for an amount of R6,492 million.
Cape Empowerment Trust has further acquired approximately 43% of BLRT
Investments Limited ("BLRT") which holds 2 357 000 GPI shares (3.5% of
GPI) for an amount of R7 million.
Both acquisitions took place by means of a subscription for new
shares.
2.3 Effective date
The effective date of the Wecwif acquisition is 7 March 2006 and that
of the BLRT acquisition is 3 April 2006.
2.4 Payment
The purchase consideration was paid in cash.
3. Further cautionary announcement
Shareholders are advised that the company is involved in negotiations which
may result in further acquisitions. Shareholders are therefore requested
to continue to exercise caution when dealing in the company"s shares until
a further announcement containing the financial effects of the acquisitions
detailed herein and/or the details of any further acquisitions is
published.
Cape Town
21 April 2006
Corporate advisor and sponsor
Sasfin Capital
(A Division of Sasfin Bank Limited)
Legal Advisor
Hofmeyr Herbstein & Gihwala Inc
Date: 21/04/2006 03:58:08 PM Produced by the JSE SENS Department
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