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SBL ERM
SBL ERM
ERM / Sable - Investment in a Property Portfolio and withdrawal of cautionary
Enterprise Risk Management Sable Holdings Limited
Limited Incorporated in the Republic of
Incorporated in the Republic of South Africa
South Africa (Registration number
(Registration number: 1968/010636/06)
1995/001603/06) Share code: SBL
Share code: ERM ISIN: ZAE000006383
ISIN: ZAE000037701 ("SABLE" or "the company")
("ERM" or "the company")
INVESTMENT IN A PROPERTY PORTFOLIO AND WITHDRAWAL OF CAUTIONARY
1. Introduction
Further to the joint cautionary announcement dated 23 October 2006,
shareholders are advised that a new entity, Amrich 58 Properties
(Proprietary) Limited ("Amrich"), which will focus on income producing
properties and property development, has been formed. In terms of the
shareholders agreement, ERM and SABLE each hold 50% of the issued share
capital of Amrich.
Shareholders are further advised that agreement has been reached with one of
the vendors of Rotaflex Investments (Proprietary) Limited ("Rotaflex"),
being Saprop Investments (Proprietary) Limited, in terms of which Amrich
will acquire 34% of the issued share capital of Rotaflex. Rotaflex is a
company with a diversified portfolio of retail, commercial, residential
and industrial properties.
2. Rationale for the acquisition
As previously reported, ERM has indicated its intention to pursue property
transactions in order to enhance shareholder value. SABLE has been
involved in the property industry in excess of 40 years and both
companies have a common vision to develop their property interests.
3. Salient terms of the acquisition
The purchase consideration, which amounts to R32,30 million, will be settled
by way of a cash contribution of R16,15 million each by ERM and SABLE to
Amrich. These contributions will be treated as shareholders" loans. No
arrangement for a deferred payment exists. The net value of the Rotaflex
portfolio of properties is approximately R95 million. The effective date
of the acquisition is 1 December 2006.
4. Conditions precedent
The acquisition is conditional upon inter alia:
-the delivery of the share certificates in respect of the shares sold
to Amrich; and
-delivery of a resolution passed by the directors of Rotaflex approving
the transfer of the shares sold to Amrich.
5. Pro forma financial effects
The pro forma financial effects of the acquisition, being less than 3%, are
insignificant on both ERM and SABLE"s net asset value, earnings per
share and headline earnings per share.
Withdrawal of cautionary
Further to the above, shareholders are advised that they no longer need to
exercise caution when dealing in the respective companies" securities on
JSE Limited.
Randburg
30 November 2006
Sponsor to ERM
Merchant Sponsors (Proprietary) Limited
Sponsor to Sable
Sasfin Capital
A division of Sasfin Bank Limited
Date: 30/11/2006 05:05:03 PM Produced by the JSE SENS Department
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