FBR - Famous Brands Limited - Famous Brands conver
FBR
FBR
FBR - Famous Brands Limited - Famous Brands converts Investec Bank Limited debt
to equity
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 CONVERTS INVESTEC BANK LIMITED DEBT TO EQUITY
On 1 December 2003 Famous Brands entered into an agreement with Investec Bank
Limited ("Investec`) to fund the acquisition of Pleasure Foods (Proprietary)
Limited ("Wimpy SA"). In terms of the agreement, a mezzanine facility of R35 000
000 was advanced to the company, which terms included a final residual payment
("the residual amount") of R9 000 000 payable on the 30th November 2008 or such
earlier date as the company may elect. The agreement further afforded Investec
the right to elect to receive shares in lieu of the residual amount at a price
of R1.55 per share, being the ruling price of the shares at the time that the
agreement was entered into.
Accordingly, the company advises that it has elected to repay the residual
amount on 28 February 2007 and that Investec has elected to follow its rights
and receive 5 806 452 shares in lieu of the residual amount.
The strong cash generative nature of Famous Brands` business has facilitated the
early repayment of the residual amount and Investec`s decision to follow their
rights is seen as a vote of confidence in the company and its prospects.
Rosebank
28 February 2007
Sponsor
Java Capital (Proprietary) Limited
Date: 28/02/2007 17:14:00 Produced by the JSE SENS Department.
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