MFL - Metrofile - Acquisition of the business of R
MFL
MFL
MFL - Metrofile - Acquisition of the business of Rainbow Waste Paper CC
Metrofile Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1983/012697/06)
Share code: MFL & ISIN: ZAE000061727
("Metrofile Holdings")
ACQUISITION OF THE BUSINESS OF RAINBOW WASTE PAPER CC ("RAINBOW")
Introduction
Metrofile Holdings Limited is pleased to announce that it has entered into
an agreement in terms of which it`s wholly owned subsidiary, Metrofile
(Proprietary) Limited, will acquire the business of Rainbow Waste Paper
CC("the Rainbow Acquisition").
Background and rationale to the Rainbow Acquisition
It is part of the Metrofile group`s investment strategy to acquire
profitable cash generative businesses which have good track records and
sound management. The Rainbow Transaction is an acquisition made in
pursuance of this strategy. Rainbow operates a long established and
successful paper management business based in Gauteng. The Rainbow business
is expected to make a positive contribution to the Metrofile group`s
profits and cash flow.
In terms of the JSE Listings Requirements the Rainbow Transaction is
smaller than a category 3 transaction for Metrofile Holdings Limited and
does not require the approval of its shareholders.
The effective date of the Rainbow Transaction is 1 April 2007 and all the
suspensive conditions have been fulfilled.
Johannesburg
22 March 2007
Sponsor
Standard Bank
Date: 22/03/2007 09:02:52 Produced by the JSE SENS Department.
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