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PSG Group/Reunert - Joint Financing Company 2 Oct 2006
PSG RLO
PSG RLO
PSG Group/Reunert - Joint Financing Company
PSG GROUP LIMITED
(Registration number 1970/008484/06)
JSE share code: PSG & ISIN: ZAE000013017
("PSG Group")
and
REUNERT LIMITED
(Registration number 1913/004355/06)
JSE share code: RLO & ISIN: ZAE000057428
("Reunert")
JOINT FINANCING COMPANY
1. PSG Capital is authorised to announce that agreement has been reached
between Reunert, PSG Group and Michiel Le Roux in respect of the
formation of a new joint venture financing company ("the New Venture"
or "the Company"). The New Venture will focus on niche financing
opportunities, using RC&C Finance Company (Pty) Ltd"s ("RC&C")
existing business, PSG Group"s financial expertise and Michiel Le
Roux"s banking expertise, providing a platform for such financing
products.
2. The New Venture will initially consist of:
- RC&C, a niche financing vehicle which provides finance in respect
of Nashua Limited"s products and other entities with a book of
approximately R1.4 billion, valued at R375 million;
- ZS Rational (Pty) Ltd, a niche financing vehicle, which provides
bridging finance; and
- PSG Group will contribute R308 million (partly financed through
its rights issue) and Michiel Le Roux R50 million (through his
investment vehicle) to further capitalise the Company with R358
million. Such funds will be utilised to expand its existing
business and to develop other niche businesses.
3. In addition to expanding the existing RC&C and ZS Rational business,
the Company will focus on other niche markets in the financing arena
such as financing provided against client"s share portfolios. The
share portfolios within the PSG Group alone amount to more than R24
billion, and PSG will conduct its scrip financing business through the
new company.
4. The initial shareholding in the Company will be:
- Reunert - 49.9%;
- PSG Group - 40%;
- Michiel Le Roux and other minorities - 10.1%.
5. The effective date of the transactions is 1 December 2006, subject to
the fulfilment of certain suspensive conditions.
6. The board will initially consist of Messrs Michiel Le Roux (Chairman),
Reunert"s Gerrit Pretorius, Dave Rawlinson and Pat Gallagher, as well
as PSG"s Jannie Mouton, Chris Otto and Jaap du Toit. The CEO of the
Company is Johan du Preez.
7. The parties do not foresee a significant influence on earnings over
the short term as a result of the transaction.
8. A more detailed announcement will be made in due course to the extent
required.
Stellenbosch
2 October 2006
Corporate advisor for the transaction and sponsor to PSG Group Limited
PSG Capital Limited
Sponsor to Reunert Limited
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/10/2006 05:30:47 PM Produced by the JSE SENS Department
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