Go Back Email this Link to a friend


Afe - Aeci Limited - Press Release: Sale Of Sans Fibres Nylon Business

Release Date: 07/04/2008 12:00:01      Code(s): AFE
AFE - AECI Limited - Press Release: Sale of Sans Fibres Nylon Business          
AECI LIMITED                                                                    
(Incorporated in the Republic of South Africa)                                  
(Registration number. 1924/002590/06)                                           
Share code: AFE & ISIN No. ZAE000000220                                         
("AECI" or "the Company")                                                       
PRESS RELEASE: SALE OF SANS FIBRES NYLON BUSINESS                               
As indicated in the annual results announcement for the year ended 31 December  
2007 as released on SENS on 26 February 2008, AECI intends disposing of its     
interest in SANS Fibres (Pty) Limited ("SANS"). The fibres business is not      
aligned with the Company`s long-term strategy of growing as a supplier of       
specialty products and services to the mining and manufacturing industries.     
AECI is pleased to announce that it has reached agreement, in principle, to sell
the nylon light decitex (LDI) business of SANS to a consortium comprising mainly
the management of SANS, the Industrial Development Corporation of South Africa  
("IDC"), and a SANS workers` trust ("the sale"). The sale offer is for the      
entire fibres business situated at Bellville in the Western Cape and at         
Stoneville, North Carolina, USA.                                                
The purchase will be largely financed by the IDC, which will provide debt and   
equity finance. The IDC will hold a 15% direct shareholding in the Company.     
Importantly, in excess of 25% of the Company`s equity will be beneficially owned
by BEE shareholders. Therefore, it will have empowered status in terms of the   
Department of Trade and Industry`s Codes of Practice on Broad-Based Black       
Economic Empowerment.                                                           
The sale is subject to a number of conditions precedent including detailed due  
diligence, the conclusion of acceptable binding funding agreements with the IDC,
Board approvals, relevant regulatory approvals, the conclusion of a sale        
agreement and the ability to satisfactorily separate the LDI business from the  
other business at Bellville.                                                    
Because of management`s involvement, it is likely that the sale will be deemed a
"small related party transaction" in terms of the JSE Listings Requirements and 
is subject to a fair opinion from an independent expert. Shareholders will be   
advised on SENS and in the press of the full terms of the sale and the          
independent opinion in due course. The conclusion of the sale is not expected to
have a significant effect on the financial results of the Company.              
Woodmead                                                                        
7 April 2008                                                                    
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 07/04/2008 12:00:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.