Avis Buy Out Of Minority Shareholders Of A&D Spitz
AVI
AVI
Avi"s Buy Out Of Minority Shareholders Of A&D Spitz (Proprietary) Limited
AVI Limited
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
("AVI" or "the Group")
AVI"s BUY OUT OF MINORITY SHAREHOLDERS OF A&D SPITZ (PROPRIETARY) LIMITED
("Spitz")
AVI is pleased to announce that it has agreed to accelerate its buy out of the
minority shareholders of Spitz with effect from 1 July 2006 ("the transaction").
The transaction is subject to a verification of Spitz"s year to date trading
performance. Should the transaction become unconditional, the consideration of
R334 million will immediately become payable. The review will be finalised by
no later than 10 July 2006.
In terms of the initial purchase agreement between the parties, of 1 April 2005,
AVI has a call option that entitles it to purchase the minority shareholding of
Spitz with effect from 1 July 2007. The minority shareholding constitutes 40% of
the issued share capital of Spitz. Due to Spitz"s positive results in the last
year, its successful integration into AVI, and AVI"s desire to accelerate the
expansion and refurbishment of Spitz"s stores, all of the parties are of the
view that the transaction is in Spitz"s best interest.
The net asset value of the Spitz interest acquired was R9 million at 30 June
2005. The pro forma financial effect of the transaction on the Group"s net asset
value and earnings as at 30 June 2005 is less than 3%.
The minority shareholding in Spitz is held by Coronation Capital Limited, Dennis
Cuzen, Geoffrey Engel, Alan Cherry, and Natalie Morris NO. The collaboration
between AVI and the minority shareholders has been very successful. In order to
retain the insight of the minority shareholders, Geoffrey Engel will remain as a
non-executive director of Spitz.
Chislehurston
Sandton
15 June 2006
Sponsor
Standard Bank
Enquiries
Simon Crutchley Tel: +(27) 11 779 2706
Chief executive officer
Owen Cressey Tel: +(27) 11 779 2704
Chief financial officer
Date: 15/06/2006 03:23:04 PM Produced by the JSE SENS Department
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