WSL - Wescoal Holdings Limited - Financial Effects of the Acquisition of
Khanyisa Mine and Withdrawal of Cautionary Announcement
Wescoal Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
(JSE code: WSL & ISIN: ZAE000069639)
("Wescoal" or "the company")
FINANCIAL EFFECTS OF THE ACQUISITION OF KHANYISA MINE AND WITHDRAWAL OF
Shareholders are referred to the announcement dated 24 June 2009 where it was
announced that Wescoal Mining (Pty) Limited, a wholly owned subsidiary of
Wescoal has purchased from Nucoal Mining (Pty) Limited the business of Nucoal of
conducting a mining operation at Portions 96, 97 and 99 Heuwelfontein 215 IR
under the name and style of Khanyisa Mine and certain specified assets and
liabilities ("the business") ("the proposed acquisition").
Below are the financial effects of the proposed acquisition.
2. PRO FORMA FINANCIAL EFFECTS
The unaudited pro forma financial effects are provided for illustrative purposes
only to provide information about how the acquisition of the business may have
impacted on Wescoal`s results and financial position. Due to the nature of the
unaudited pro forma financial information, it may not give a fair presentation
of the group`s results and financial position after the acquisition of the
The unaudited pro forma financial effects are based on the reviewed financial
information for the six months ended 30 September 2008 as announced on SENS on 5
The unaudited pro forma financial effects have been included in terms of the JSE
Listings Requirements. The directors of Wescoal are responsible for the
preparation of the unaudited pro forma financial effects.
Reviewed Unaudited pro % Change
results for forma after
the six months the
ended 30 acquisition 30
September 2008 September 2008
Earnings per share 10.4 11.2 7.69%
Headline earnings 10.5 11.5 9.52%
per share (cents)
Fully diluted 10.3 11.3 9.71%
earnings per share
Fully diluted 10.4 11.4 9.62%
per share (cents)
Net asset value 106.61 106.0 (0.56%)
per share (cents)
Net tangible asset 66.49 65.9 (0.75%)
value per share
Shares in issue at 145 931 145 931
year end (`000)
Weighted average 126 068 126 068
number of shares
in issue (`000)
Fully diluted 127 466 127 466
shares in issue
1. The "before the acquisition" column has been extracted without
adjustment from the reviewed results of Wescoal for the six months
ended 30 September 2008.
2. The "after acquisition" earnings and headline earnings per share have
been based on the management accounts of the business for the six
months ended 31 December 2008. Wescoal`s management are satisfied with
the quality of these management accounts.
3. The earnings and headline earnings per share were calculated as if the
acquisition took place on 1 April 2008.
4. The net asset value and net tangible asset value per share were
calculated as if the acquisition took place on 30 September 2008.
5. No goodwill will arise on the acquisition.
6. Interest foregone has been calculated at an interest rate of 9% on the
initial purchase price of R25 million and at prime interest rate of
11% on the balance of the purchase price up to a maximum of R8.8
3. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Caution is no longer required to be exercised by shareholders when dealing in
4. FURTHER ANNOUNCEMENT
Shareholders will be notified once the proposed acquisition has become
25 June 2009
Date: 25/06/2009 10:57:02 Supplied by www.sharenet.co.za
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