Go Back Email this Link to a friend

A E C I Limited - Notice Of Property Presentation And M&a Update

Release Date: 07/11/2012 11:00:00      Code(s): AFE     
(Incorporated in the Republic of South Africa)
(Registration number 1924/002590/06)
Share code AFE      ISIN No. ZAE000000220
(?AECI? or ?the Company?)


A presentation providing an update on the Company?s strategy,
business model and valuation for its property portfolio is being
given to institutional shareholders today, Wednesday, 7 November
2012. The presentation will be available on AECI?s website
www.aeci.co.za at or about 11:00 today.

The presentation also includes an update on the Company?s M&A
activity and commentary pertaining to transactions not previously
announced is as follows:

1. AECI has acquired a 42% shareholding in an equity partnership with
PT Black Bear Resources Indonesia (?BBRI?) for a consideration of
US$23 million. BBRI is erecting a nitric acid plant and an ammonium
nitrate solution plant in Bontang, Indonesia.

In line with its internationalisation strategy, AECI subsidiary AEL
Mining Services (?AEL?) entered the Indonesian market in 2009.
Significant sales volumes were achieved and AEL rapidly became the
second largest supplier of explosives to that market. In-country
access to a secure source of ammonium nitrate will assist in
sustaining AEL?s growth trend in the region.

The BBRI partnership is the first phase of a potential future AECI
investment programme for the growing South East Asian mining services

2. AECI has acquired 80% of Afoodable Proprietary Limited
(?Afoodable?) and this business will be merged into the Food Division
of Lake International Technologies (?Lake?). Afoodable?s primary
activity is the manufacture and bottling of liquid marinades and
sauces for leading retail and manufacturing outlets.

Lake represents international manufacturers and suppliers of
specialty ingredients for the food industry. The Afoodable
acquisition provides Lake with entry into the meat sauces industry
and enhances the range of products and services available to its
customers in Southern Africa.

3. Resitec Industria Quimica Limitada (?Resitec?) is based in Brazil
and is a manufacturer and supplier of emulsifiers for synthetic
rubber production. AECI and the MeadWestvaco Corporation (?MWV?) of
the USA have held a 50:50 joint venture partnership interest in
Resitec for the past four years. Agreement between the two parties
has been reached for MWV to acquire AECI?s 50% interest in the

Growth in Brazil remains an important component of AECI?s strategy.
The Company has reviewed and refined the details of this strategy in
terms of its preferred target markets and business model. Whilst
involvement in Resitec has been invaluable for acquiring local
knowledge and experience as a platform for future expansion, AECI
concluded that Resitec is not ideally aligned with its core strategy.

Woodmead, Sandton
7 November 2012

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 07/11/2012 11:00:00 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
© 2018 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.