VUNANI LIMITED - Disposal of investment in IMI

Disposal of investment in IMI

VUNANI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/020641/06)
JSE code: VUN
ISIN: ZAE000163382
(“Vunani” or “the company” or “the group”)


DISPOSAL OF INVESTMENT IN IMI


1. INTRODUCTION

   Vunani has a 48% interest in Integrated Managed Investments
   Proprietary Limited (“IMI”), a boutique asset management company
   focusing on private client discretionary portfolios, trusts,
   charities and pension funds.

   The balance of the shares in IMI are held by IMI’s executive
   management.

2. DETAILS OF TRANSACTION

  Vunani has agreed to the sale of its 48% holding in IMI to Steve
  Stapleton-Smith   and   John  Slauck,    who  acquired  the 48%
  shareholding in IMI from Vunani in equal proportions, for a total
  cash consideration of R10.2 million (“the transaction”). The
  effective date of the transaction was 28 February 2013. The
  proceeds shall be retained within the group and enhance the
  group’s available cash resources. The transaction is not subject
  to any unfulfilled conditions precedent.

3. RATIONALE

   Vunani has taken a decision to hold controlling interests in its
   operating businesses. The offer by the executive management of
   IMI to acquire Vunani’s shareholding in IMI provided Vunani with
   the ideal opportunity to exit this investment and redeploy its
   resources to businesses in the group where it believes it can
   achieve a higher rate of return.

4. FINANCIAL EFFECTS
The unaudited pro forma financial effects of the transaction, for
which the directors are responsible, on earnings per share
(“EPS”) and headline earnings per share (“HEPS”) are provided for
illustrative purposes only to show the effect of the transaction
as if the transaction had taken effect on 1 January 2012.

Because of their nature, the unaudited pro forma financial
effects may not give a fair presentation of the group’s
performance. The unaudited pro forma financial effects have been
compiled from the unaudited condensed consolidated results of the
Company for the six months ended 30 June 2012 and are presented
in a manner consistent with the format and accounting policies
adopted by the Company and have been adjusted as described in the
notes set out below.

In terms of the JSE Listings Requirements, financial effects on
the statement of financial position are not presented as they are
not significant, being below 3%.


                                    Unaudited   Unaudited
                                                After the
                                   Before the transaction         %
                                                             Change
                         Notes    transaction

 EPS (cents)              1&2            14.2        13.5     (4.9)



 HEPS (cents)             1&2            19.2        18.4     (4.2)




Notes:
1.    The "unaudited before the transaction" column information
      has been extracted from the company’s unaudited condensed
      consolidated results for the six months ended 30 June
      2012.


 2.   The effects relating to the EPS and HEPS are based on the
      following assumptions and information:

      2.1   the transaction was effective 1 January 2012;
      2.2   the proceeds of the transaction exceeded the carrying
            value of the investment in IMI resulting in a
            disposal profit of R558 000 which will be subject to
            capital gains tax;
      2.3   the attributable earnings in respect of IMI for the
            six months ended 30 June 2012 amounted to R1 252 000;


  The adjustment in 2.2 will not have a continuing effect.

5. CLASSIFICATION OF THE TRANSACTION

   Based on the value of the transaction, the transaction is
   classified as a Category 2 transaction in terms of the JSE
   Limited Listings Requirements.




22 March 2013
Sandton

Designated Adviser
Grindrod Bank Limited

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