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MKL
MKL
Makalani - Makalani Increases Its Portfolio To R1.6 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 R1.6 BILLION
1. Introduction
Unitholders of Makalani are advised that Makalani has increased its portfolio of
invested assets by R405 million to R1 583 million. Makalani has provided
funding for the Peermont Global Tusk Holdings (Proprietary) Limited ("PGTH")
empowerment transaction and to an empowerment transaction involving a subsidiary
of multinational company.
2. The PGTH investment
Makalani has acquired R85 million in credit exposure to the PGTH empowerment
transaction. The exposure is linked to the funding provided to MIC Leisure
(Property) Limited, a company whose ultimate shareholder is the Mineworkers
Investment Company (Proprietary) Limited (MIC). The PGTH investment disclosed
herein is not related to the announcement issued by Peermont Global Limited on
21 November 2006.
PGTH, is a subsidiary of Peermont Global Limited ("Peermont Global") a company
whose main business is the design, development and operation of hotel, casino,
resort and related facilities through its development and management of Emperors
Palace Hotel Casino and Convention Centre, the Graceland Hotel Casino and
Country Club, The Grand Palm Hotel Casino and Convention Resort and the Mondazur
San Lameer Resort Estate Hotel.
3. The multinational investment
Makalani has provided funding of R320 million as part funding to an empowerment
company that has acquired a significant stake in a subsidiary of a multinational
company. Makalani will disclose the nature of the transaction in due course
once the multinational company has made a public announcement of the
transaction.
4. Quarterly portfolio update as at 30 September 2006
In terms of section 15.4(f) of the JSE Limited ("JSE") Listings Requirements,
Makalani is required to disclose its portfolio to unitholders on a quarterly
basis until such time as at least 50% of the total portfolio has been
established in investments other than cash or short dated securities.
Makalani has now exceeded the 50% threshold, the invested assets now comprise
70% of the total portfolio after taking into account the recent repurchase of
linked units.
The summary of the portfolio as at 30 September 2006 appears in the table below.
Asset Empowered Sector Nominal
company Amount
(R"000)
Loans
Brait Brait Financial services 25,000
Imperial Lereko Mobility Transport and 140,000
logistics
Kredit Shanduka Group Financial services 68,379
Inform
Life Brimstone and Healthcare 47,607
Healthcare Mvelaphanda
Mondi Shanduka Paper and packaging 40,550
Newsprint
Unitrans Mvelaphanda and Household goods 200,000
Arch Equity
Emira Micawber Properties 116,397
Peermont MIC Gaming, leisure and 85,000
hotels
Preference shares
Aberdare Izingwe Engineering 25,013
Brait Brait Financial services 103,130
FirstRand Kagiso, MIT and Banks 150,000
WDB
Gold Fields Mvelaphanda Mining 50,381
Inyanga Shanduka Engineering 26,350
Resources
Metropolitan Kagiso Insurance 116,715
Mvelaphanda Mvelaphanda Services 25,000
Group Group
Nampak Aka Capital Paper and packaging 44,000
Subsidiary of a multi national 320,000
Total 1,583,522
Annual pre-tax yield(%) 14.02
Net Asset Value(R) 103.45
Notes
(i) The portfolio information above has neither been audited nor reviewed by
Makalani"s external auditors.
(ii) Makalani has not made any impairment provisions against any asset in the
portfolio.
(iii) In calculating the weighted annualised pre-tax yield on investments,
dividends have been grossed up using the corporate tax rate of 29% and the
benefits of Secondary Tax on Companies have been ignored.
(iv) The net asset value ("NAV") per unit includes capital and accrued interest
and dividends as at 30 September 2006, the NAV is calculated after taking into
account the impact of the recent repurchase of linked units.
(v) The Peermont and subsidiary of the multinational transactions only became
effective on 16 November 2006 and 17 November 2006 respectively, but for
illustrative purposes only are included in the weighted annualised pre-tax yield
on investments.
Sandton
21 November 2006
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 21/11/2006 03:16:24 PM Produced by the JSE SENS Department
