TBS - Tiger Brands Limited - Disposal Of Dairybell
TBS
TIIH
TBS - Tiger Brands Limited - Disposal Of Dairybelle Business
By Tiger Brands
TIGER BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
DISPOSAL OF DAIRYBELLE BUSINESS BY TIGER BRANDS
An agreement has been concluded in terms of which the dairy business
conducted in the name of DairyBelle will be sold to a consortium of
investors which is envisaged to include the management and staff of
DairyBelle.
The transaction is conditional, inter alia, upon regulatory approvals.
The effective date of the transaction will be the first day of the month
following the month in which the appropriate approval is obtained from the
Competition Tribunal.
The disposal of DairyBelle has been agreed to by Tiger Brands as the dairy
business is not considered to be a strategic core business for Tiger
Brands. Furthermore, it is envisaged that DairyBelle`s potential as a
significant player in the dairy industry can be better maximised as an
independent dedicated dairy company.
Assuming the transaction had taken place at the commencement of the 2006
financial year, it would have had a marginally dilutive effect on Tiger
Brands` headline earnings per share in that year. Taking into account a
capital profit realised on the disposal, the transaction would have
resulted in an improvement in earnings per share of approximately 10% in
2006 and an improvement in net asset value per share, as at 30 September
2006, of approximately 5%.
Bryanston
Date: 21 February 2007
Sponsor: JP Morgan Equities Limited
Investment Bank and Adviser: Nedbank Capital, a division
of Nedbank Limited
Date: 21/02/2007 09:00:08 Produced by the JSE SENS Department.
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