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
(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
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.
7 April 2008
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 07/04/2008 12:00:01 Supplied by www.sharenet.co.za
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