FBR - Famous Brands Limited - Famous Brands acquir
FBR
FBR
FBR - Famous Brands Limited - Famous Brands acquires Wimpy UK and withdrawal
of cautionary
Famous Brands Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR & ISIN code: ZAE000053328
("Famous Brands" or the "company")
Famous Brands acquires Wimpy Uk and withdrawal of cautionary
ACQUISITION OVERVIEW
Famous Brands has acquired a 75% stake in Ludgate 282 Ltd ("Wimpy UK"), thereby
achieving the group`s stated strategic intent to enter the first world branded
QSR/Casual Dining market via acquisition. The remaining 25% shareholding is
owned by Halifax Bank of Scotland. The acquisition consideration is UK GBP3
million, with a further UK GBP2 million to be invested in re-energising the
brand. The business is currently funded via a debt structure of UK GBP9
million. The UK GBP5 million total investment will be funded through a
combination of cash reserves and debt finance. The deal is conditional upon the
Wimpy UK funding agreements becoming unconditional. Completion is targeted for
the 5th March 2007.
NATURE OF THE BUSINESS OF WIMPY UK
Wimpy UK is a suburban, casual dining restaurant offering, which comprises 194
outlets across England, Scotland and Wales, and operates a further 20
restaurants under a master licence arrangement in Ireland. It has a 50 year
heritage, and is the largest independently owned franchised restaurant chain in
the United Kingdom. The business owns the Wimpy trademark in 15 European
countries.
The restaurant network includes representation on 25 Road Chef Motorway Service
Areas (petroleum station forecourts), which are high-visibility multi-offering
sites on transit routes, resembling the Engen-Wimpy alliance model in South
Africa.
RATIONALE FOR THE ACQUISITION
This acquisition rationale centres on a low risk / low cost strategy affording
optimal entry into a first world economy. The acquired business aligns with
Famous Brands` strategic intent and core competencies, and the group`s South
African intellectual property and experienced management will add significant
value in revitalising the business.
WITHDRAWAL OF CAUTIONARY
Shareholders are advised that caution is no longer required to be exercised when
dealing in the company`s securities.
Rosebank
27 February 2007
Sponsor
Java Capital (Proprietary) Limited
Attorneys
HR Levin Attorneys, Notaries and Conveyancers
Date: 27/02/2007 10:00:01 Produced by the JSE SENS Department.
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