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Aeci Limited Media Release

Release Date: 20/01/2000 17:26:03      Code(s): AFE AFEP
DATE:  20 JANUARY 2000
IN LINE WITH ITS TRANSFORMATION PROGRAMME, AECI LIMITED ANNOUNCES THAT ITS 50
PER CENT SHAREHOLDINGS IN BOTH RESINKEM (PTY) LIMITED AND SPECIALTY MINERALS
SOUTH AFRICA (PTY) LIMITED (SMSA) HAVE BEEN ACQUIRED BY CHEMICAL SERVICES
LIMITED (CHEMSERVE) FOR R40 MILLION.  THE CONSIDERATION, ARRIVED AT THROUGH
INDEPENDENT EVALUATION OF THE BUSINESSES, WILL BE SATISFIED THROUGH THE ISSUE
OF 3.33 MILLION ADDITIONAL CHEMSERVE SHARES TO AECI, THEREBY INCREASING AECI'S
SHAREHOLDING IN CHEMSERVE FROM 60.9 PER CENT TO 62.7 PER CENT.
A JOINT VENTURE IN TECHNICAL COATINGS WITH PPG INDUSTRIES OF THE USA, THE
DISPOSAL OF AUTOPLASTIC TO SAI AUTOMOTIVE AG, THE AUTOMOTIVE ACTIVITY OF THE
SOMMER ALLIBERT GROUP, AND THE SALE OF AECI'S 50 PER CENT SHARE IN GOLDCHEM
(PTY) LIMITED TO ITS PARTNER, RAND REFINERY LIMITED, HAVE ALSO BEEN CONCLUDED.
THE AGGREGATE VALUE OF THESE FIVE TRANSACTIONS AMOUNTS TO SOME R100 MILLION.
RESINKEM IS A 50:50 JOINT VENTURE WITH GEORGIA-PACIFIC RESINS INC. OF ATLANTA,
USA.  IT IS SOUTH AFRICA'S LEADING SUPPLIER OF UREA FORMALDEHYDE ADHESIVES
PRIMARILY FOR THE PARTICLE BOARD INDUSTRY.  GEORGIA-PACIFIC RESINS INC. IS
AMONG THE WORLD'S LARGEST PRODUCERS AND MARKETERS OF THERMOSETTING RESINS FOR
WOOD PRODUCT ADHESIVES AND INDUSTRIAL BINDERS.
SMSA IS OWNED IN EQUAL SHARES WITH SPECIALTY MINERALS INC. (SMI) OF THE USA.
THE COMPANY MANUFACTURES PRECIPITATED CALCIUM CARBONATE (PCC) PRIMARILY FOR THE
PAPER INDUSTRY ON THE AFRICAN CONTINENT AS A SPECIALTY PIGMENT FOR FILLING AND
COATING HIGH QUALITY PAPER.  SMI IS THE WORLD LEADER IN PCC CRYSTAL-ENGINEERING
TECHNOLOGY AND THE LARGEST SUPPLIER OF PCC TO THE WORLDWIDE PAPER INDUSTRY.
THE COMPANY'S PRODUCT IS ALSO USED IN THE FOOD, PHARMACEUTICAL, PLASTICS AND
SEALANTS INDUSTRIES.  BOTH TRANSACTIONS TOOK EFFECT ON 1 JANUARY THIS YEAR AND
IT IS EXPECTED THAT RETURNS FROM RESINKEM'S AND SMSA'S HIGH-TECH, NICHE
PRODUCTS WILL BE OPTIMISED IN CHEMSERVE WHICH HAS AN EXCELLENT TRACK RECORD IN
DEVELOPING AND SERVING SPECIALTY MARKETS.
AUTOPLASTIC, BASED IN PORT ELIZABETH, PRODUCES AUTOMOTIVE TRIM COMPONENTS FOR
MOST SOUTH AFRICAN MOTOR VEHICLE MANUFACTURERS AND BENEFITED FROM A SOMMER
ALLIBERT TECHNOLOGY LICENCE AGREEMENT FOR A NUMBER OF YEARS.  GOLDCHEM SUPPLIES
SPECIALTY CHEMICALS TO THE GOLDPLATING PROCESS INDUSTRY.
IT IS ALSO CONFIRMED THAT IN THE TECHNICAL COATINGS AREA, A JOINT VENTURE WITH
PPG INDUSTRIES OF PITTSBURGH, USA, WAS FINALISED.  IN TERMS OF THE AGREEMENT
SIGNED, THE TECHNICAL COATINGS UNIT OF DULUX BECAME A SEPARATE COMPANY, AECI
COATINGS (PTY) LIMITED, WITH AECI HOLDING 80 PER CENT OF THE EQUITY.  THE NEW
COMPANY WILL OPERATE IN THE AUTOMOTIVE ORIGINAL EQUIPMENT, REFINISH AND GENERAL
INDUSTRIAL COATINGS MARKETS.  THROUGH THE STRATEGICALLY BENEFICIAL TIE-UP WITH
PPG, AECI COATINGS' CUSTOMERS WILL HAVE ACCESS TO PPG'S LATEST PRODUCTS AND
PROCESS TECHNOLOGY IN THESE INDUSTRIES.  THE COMPANY WILL ALSO HAVE ACCESS TO
ADDITIONAL PPG TECHNOLOGIES, INCLUDING ADHESIVES, SEALANTS AND METAL
PRE-TREATMENTS.
WITH REFERENCE TO PREVIOUS ANNOUNCEMENTS REGARDING THE DISPOSAL BY AECI OF A
CONTROLLING 50 PER CENT STAKE IN KYNOCH FERTILIZER (PTY) LIMITED TO NORSK HYDRO
OF NORWAY WITH EFFECT FROM 1 JULY 1999, THIS TRANSACTION WAS FINALISED IN
DECEMBER AFTER THE FULFILMENT OF ALL CONDITIONS PRECEDENT.
INQUIRIES:    MICHAEL J BLIZZARD
              MANAGER:  GROUP COMMUNICATIONS
              AECI LIMITED
              TEL:  (011)806-8795
              FAX:  (011)806-8793
              CELL:  082 800 3702



                                        
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