| Tue 4 Jul 2006, 15:58 | | Makalani Holdings Limited - Makalani increases its |
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MKL
MKL
Makalani Holdings Limited - Makalani increases its portfolio to R1.1 billion
Makalani Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/000726/06)
Share code: MKL
ISIN: ZAE000066700
("Makalani" or "the company")
Makalani increases its portfolio to R1.1 billion
Introduction
Makalani has, effective 30 June 2006, acquired from Rand Merchant Bank, a
division of FirstRand Bank Limited, credit exposure linked to the Unitrans
Limited ("Unitrans") and Imperial Holdings Limited ("Imperial") empowerment
transactions, and Brait South Africa Limited ("BSAL") (collectively, "the
transactions"). The total cash consideration of the transactions amounts to R365
million. The transactions have increased Makalani"s portfolio of assets other
than cash to R1.1 billion. The current annualised weighted average pre-tax
yield on invested assets is 13.03%.
The Unitrans investment
Makalani has acquired R200 million in credit exposure to the Unitrans BEE
transaction. The exposure is linked to funding provided to a company that is a
13% shareholder in Unitrans and owned by Mvelaphanda Capital (Proprietary)
Limited, Arch Equity (Proprietary) Limited and a Unitrans black employee trust
and guaranteed by Steinhoff International Holdings Limited.
Unitrans is a diversified transportation, distribution and logistics, motor
retailing and car rental company. It has many diverse and complementary
business interests in logistics and associated industries. These include
freight and passenger transport, warehousing, distribution and logistics
services, express freight, vehicle retailing, fleet management, vehicle leasing
and insurance, and car rental.
The Imperial investment
Makalani has acquired R140 million in credit exposure to the Imperial BEE
transaction. The exposure is linked to the senior funding provided to Lereko
Mobility (Proprietary) Limited, a 7.25% empowerment shareholder of Imperial.
Imperial is a large company in the wider transportation and mobility markets in
Southern Africa, Europe and the United Kingdom. Imperial"s activities in these
markets encompass a wide range of related sales and services, namely:
- integrated logistics solutions, combining asset ownership and intellectual
capital;
- fleet management;
- vehicle and forklift leasing;
- aviation operations, sales and leasing;
- car rental and tourism;
- motor vehicle importation, sales and after-sales services; and
- related financial services businesses aimed at extracting further value
from the mobility product offerings.
The BSAL investment
Makalani announced in its quarterly update on 3 May 2006 that it has, alongside
other subscribers, subscribed for R100 million of cumulative redeemable
preference shares in BSAL as part of an exercise by BSAL to raise capital to
fund its growth. Makalani has increased its exposure to BSAL by R25 million.
BSAL is 26% owned by black economic empowerment entities.
BSAL is a subsidiary of Brait Societe Anonyme ("Brait") registered in Luxembourg
and listed on the London Stock Exchange, the Luxembourg Stock Exchange and the
JSE Limited. Brait is an international investment and financial services group
focused on private equity, specialised funds management and corporate finance.
As an international group, Brait operates and invests in South Africa, sub-
Saharan Africa, Europe and North America. Brait provides a wide range of
investment and specialised financial services to a substantial client base that
includes listed and unlisted companies, financial and government institutions
and high net worth individuals.
Financial effects
The financial effects of the transactions on headline earnings per linked unit
and earnings per share for the period ended 31 December 2005 and net asset value
per unit and net tangible asset value per unit at 31 December 2005, had the
transactions been in effect at the beginning of the period, are not significant
(i.e. not greater than 3%) and are therefore not disclosed.
Sandton
4 July 2006
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 04/07/2006 03:58:08 PM Produced by the JSE SENS Department
