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WES
WES
WES - Wesco - Disposal and withdrawal of cautionary announcement
Wesco Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/005871/06)
JSE share code: WES & ISIN: ZAE000007928
("Wesco" or "the company")
DISPOSAL OF INVESTMENT IN METAIR INVESTMENTS LIMITED ("Metair") AND WITHDRAWAL
OF CAUTIONARY ANNOUNCEMENT
1. Introduction
The board of directors of the company wishes to advise that the company has
entered into an agreement in terms of which it has disposed of its investment in
Metair to Coronation Capital Limited ("Corocap") or its nominees ("the
disposal") on the terms and conditions set out in this announcement.
2. Nature of business of Metair, rationale for the disposal and application of
the disposal proceeds
Metair and its subsidiaries are manufacturers and suppliers of products
predominantly for the automotive industry. The disposal enables Wesco to realise
a long-standing investment at a reasonable value.
The board of directors of Wesco will in due course decide on the most opportune
application for the disposal proceeds.
3. The disposal
Wesco has disposed of its investment in Metair, consisting of 2 362 264 ordinary
shares (38.94% of the issued share capital of Metair) for an aggregate
consideration of R590.566 million (R250 per share), to be settled in cash.
Corocap has acquired 1 962 264 Metair shares (32.34% of Metair`s issued share
capital) and nominated the Metair Share Incentive Trust to acquire 400 000
shares (6.59% of Metair`s issued share capital).
The effective date of the disposal is 8 December 2006.
4. Financial effects of the disposal
The table below sets out the financial effects of the disposal on the earnings,
headline earnings, net asset value and net tangible asset value per share in
Wesco based on the audited financial statements of the company for the financial
year ended 31 March 2006. The financial effects are the responsibility of the
directors of Wesco and are prepared for illustrative purposes only. Because of
their nature, the financial effects may not fairly present the financial
position of the company, changes in equity, results of its operations or cash
flows after the disposal.
Note Before the After the % change
disposal disposal increase/
(cents) (cents) decrease
Earnings per share 1 2 913 4 881 67.5
Headline earnings per share 1 2 913 1 807 (38.0)
Net asset value per share 2 20 349 22 163 8.9
Net tangible asset value per 2 20 349 22 163 8.9
share
Number of shares in issue 8 441 800 8 441 800 -
Notes:
1. On the assumption that the disposal was effective on 1 April 2005 and
that the proceeds arising from the disposal had been invested to earn
an after tax interest income of 5.7% for the financial year ended 31
March 2006. Headline earnings excludes the profit resulting from the
disposal.
2. On the assumption that the disposal was effective on 31 March 2006.
5. Withdrawal of cautionary announcement
The cautionary announcement dated 9 November 2006 is hereby withdrawn.
By order of the board
Johannesburg
12 December 2006
Sponsor
ARCAY MOELA
Arcay Moela Sponsors (Proprietary) Limited
(Registration number 2006/033725/07)
Shareholders and other interested parties are invited to join a conference call
with Wesco, Metair and Corocap from 15:30pm to 16:15pm today (12 December 2006).
The dial-in numbers are as follows:
SA Toll +27.11.535.3600
SA Toll Free 0800.200.648
Date: 12/12/2006 08:50:03 Produced by the JSE SENS Department.
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