The board of directors of PSV ("the Board") is pleased to advise shareholders that PSV has entered into a Sale of Shares Agreement ("Disposal Agreement") with WPIL International Pte Ltd ("WPIL"), a private company incorporated in accordance with the laws of the Republic of Singapore and a subsidiary of WPIL Ltd, a global player in large engineered water handling pumps for the power, municipal mining and oil and gas sectors. In terms of the disposal agreement, and subject to the fulfilment or waiver of the conditions precedent set out below, WPIL will acquire from PSV 100% of the issued share capital of each of APE Pumps (Pty) Ltd ("APE Pumps") ("APE Shares"), Mather + Platt (SA) (Pty) Ltd ("Mather + Platt") ("Mather + Platt Shares"), PSV Properties 2 (Pty) Ltd ("PSV Properties 2") ("PSV Properties 2 Shares"), PSV Services (Pty) Ltd ("PSV Services") ("PSV Services Shares") and PSV Zambia Limited ("PSV Zambia") ("PSV Zambia Shares"), and 100% of all and any claims on loan account, or otherwise ("Claims"), due to PSV by APE Pumps, Mather + Platt, PSV Properties 2, PSV Services and PSV Zambia, collectively referred to hereinafter as the "Companies" or the "Pump Business", at the effective date of the disposal detailed in paragraph 1.4 below, for a total consideration of R54 million ("Disposal"). The APE Shares, the Mather + Platt Shares, the PSV Properties 2 Shares, the PSV Services Shares and the PSV Zambia Shares, which are collectively referred to hereinafter as the "Shares", together with the Claims, are referred to hereinafter as the "Interest". 1.2 Nature of the Pump Business and rationale for the Disposal PSV's Pump Business, which operates primarily in South Africa and Zambia, has been designing, manufacturing, maintaining, refurbishing and importing pumps for over five decades, and has an extensive product base in mines, municipalities, paper mills, minerals beneficiation companies, ports and harbours, water authorities, power generation utilities and petrochemical refineries throughout Africa and worldwide. The rationale for the disposal is to expunge PSV's primary debt and inject free cash flow back into the remaining subsidiaries for working capital purposes.

Cautionary announcement
Shareholders are advised to exercise caution when dealing in PSV's securities until a further announcement, incorporating the pro forma financial effects of the disposal of the pump business, is made.








2012-02-22 13:23:49