BLACKSTAR GROUP SE - Blackstar net asset value update

Blackstar net asset value update

Blackstar Group SE
(Company number SE 4)
(registered as an external company with limited liability in the Republic of South Africa under
registration number 2011/008274/10)
Share code: BCK
ISIN: GB00B0W3NL87
(“Blackstar” or “the Company”)

                            BLACKSTAR NET ASSET VALUE (“NAV”) UPDATE

                                INTRINSIC NAV AS AT 30 SEPTEMBER 2012


                                                   GBP               ZAR               GBP               ZAR
                                                30-Sep-12         30-Sep-12         31-Aug-12         31-Aug-12
    NAV per share                                     1.03               13.82            1.00               13.32
    Ordinary share price                              0.74               10.19           0.725                9.80
    Ordinary share price discount to NAV              28%                 26%             28%                 26%
    See through NAV per share                         1.05               14.01            1.05               13.97
    Total net assets                                84.7m            1,134.2m           82.1m            1,093.5m
    Market capitalisation                           60.7m              836.5m           59.5m              804.5m

Notes

1      All information is unaudited.
2      The intrinsic NAV provides a measure of the underlying value of the Group’s assets and does not indicate
       when the investments will be realised, nor does it guarantee the value at which the investments will be
       realised.
3      For the purposes of determining the intrinsic values, listed investments on recognised stock exchanges are
       valued using quoted bid prices and unlisted investments are shown at directors’ valuation, determined using
       the discounted cash flow methodology. This methodology uses reasonable assumptions and estimations of
       cash flows and terminal values, and applies an appropriate risk-adjusted discount rate that quantifies the
       investment’s inherent risk to calculate a present value. Given the subjective nature of valuations, the Group
       is cautious and conservative in determining the valuations and has a track record of selling its unlisted
       investments in the ordinary course of business above the levels at which it values them.
4      The Group’s investment in Mvelaphanda Group Limited trades at a discount to its NAV. The see through
       NAV has been presented, which is the NAV as reported above, adjusted for the estimated discount.
5      All amounts have been translated using the closing exchange rates at the end of the relevant period.
Portfolio Summary

Blackstar’s NAV at 30 September 2012 comprised investments in the following sectors:

 Sector                                                         GBP           ZAR      % of Gross
                                                            Millions      Millions         Assets
 Investment Holdings                                            22.6        301.9           25.2%
 Health Care                                                    21.5        288.3           24.1%
 Industrials                                                    18.4        246.0           20.7%
 Media                                                          14.9        199.8           16.7%
 Services                                                         7.6       101.2            8.5%
 Other                                                            4.3         58.1           4.8%
                                                                89.3      1,195.3         100.0%
 Net debt                                                       (4.6)       (61.1)
                                                                84.7      1,134.2


Portfolio Performance and outlook

Since 31 August 2012, the intrinsic NAV per share increased by 3.7% in South African Rand and by
3.1% in Pound Sterling, mainly due to increases in the share price of Litha Healthcare Group Limited
and Mvelaphanda Group Limited (“MVG”) together with Times Media Group Limited (“TMG”), post the
unbundling of MVG’s shares in TMG to its shareholders.

The acquisition by TMG of the entire issued ordinary share capital of Avusa Limited, through a
scheme of arrangement became operative on 25 September 2012. MVG unbundled its shares in
TMG to its shareholders and consequently Blackstar now holds 11.6% of TMG directly.

Blackstar is in the process of completing the disposal of its services derivative investment. The
disposal proceeds will be applied against the Investec Bank Limited debt facility and any proceeds
realised to date have been set off against the outstanding debt balance to arrive at the net debt
amount in the table above.

The investment portfolio continues to perform in line with expectations


5 October 2012



For further information, please contact:

Blackstar Group SE                                 Bryan Moyer /                + 356 2144 6377
                                                  Lesley Micallef

Liberum Capital Limited                         Chris Bowman /              +44 (0) 20 3100 2222
                                              Christopher Britton


PSG Capital (Pty) Limited                      David Tosi / Willie           +27(0) 21 887 9602
                                                      Honeyball

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