NCS - Nictus - Announcement of sale of Corporate Properties (PRORIETARY) Limited

NCS - Nictus - Announcement of sale of Corporate Properties (PRORIETARY) Limited
and withdawal of cautionary                                                     
NICTUS LIMITED                                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 1981/001858/06)                                            
JSE Share code: NCS                                                             
NSX Share code: NCT                                                             
ISIN Code NA0009123481                                                          
("Nictus" or "the company")                                                     
ANNOUNCEMENT OF SALE OF CORPORATE PROPERTIES (PRORIETARY) LIMITED AND WITHDAWAL 
OF CAUTIONARY                                                                   
Announcement relating to the sale of shareholding of Corporate Properties       
(Proprietary) Limited ("Properties"), a wholly owned subsidiary Nictus Limited  
("Nictus"), to Erastus Shipumba Properties CC ("ESP") in cash ("The             
Transaction").                                                                  
Nictus is pleased to advise the finalisation of negotiations for the disposal of
shareholding of Properties. Properties is a wholly owned subsidiary owning an   
office building in Windhoek (Namibia) leasing out office space to group         
companies.                                                                      
Nictus and its wholly-owned subsidiary Nictus Holdings Limited ("Holdings") have
concluded an agreement with ESP to dispose of the shareholding of Properties for
a cash amount of R22.2 million. The purchase price is payable on transfer of the
shares in the name of ESP. The agreement is subject to the fulfilment of certain
conditions, referred to below.                                                  
This disposal provides the group with the opportunity to upgrade current        
properties held to achieve longer term growth potential and thus the funds      
emanating from the Transaction will be applied for development of property held 
elsewhere in the group. These investments in the other properties of the group, 
will lead to better utilization and profit growth in future.                    
FINANCIAL IMPACT                                                                
Based on the 31 March 2011 audited financial results, the net asset value of the
subsidiary at group level will be R18.4m. The net profit attributable from the  
subsidiary at group level was R0.1m. The profit the group will make on the sale 
of the subsidiary based on the 31 March 2011 audited results will be R3.8m.     
The financial effect of sale of the property will have the following effect on  
the Group:                                                                      
                            Before   After the sale of Properties  Percentage   
Earnings per share (cents)   28.97    36.03                          24.38%     
Headline earnings per share  29.12    36.18                         24.26%      
(cents)                                                                         
Net asset value per share    208.51   225.55                        8.17%       
(cents)                                                                         
Net tangible asset value     1        1 728.37                      0.17%       
per share (cents)            725.42                                             
Notes and assumptions:                                                          
1.   The "Before" column is based on the audited consolidated statement of      
    financial position of Nictus as at 31 March 2011 and consolidated statement 
of comprehensive income of Nictus for the year ended 31 March 2011 released 
    on SENS on 29 June 2011.                                                    
2.   The "After the sale of Properties" column presents the unaudited financial 
    position after the disposal of the subsidiary at 31 March 2011, including a 
group adjustment in terms of IFRS 5 to illustrate the effect on the group   
    after the reclassification and revaluation of the property in terms of the  
    applicable IFRS.                                                            
3.   The cash proceeds received have been utilised to reduce finance costs of   
borrowings at 9.75%.                                                        
4.   Nictus will rent the property from the purchaser at a market related rental
The Transaction is classified as a category 2 transaction in terms of the JSE   
Limited Listings Requirements.                                                  
CONDITIONS PRECEDINT                                                            
The Transaction is subject, inter alia, to the following conditions precedent:  
1.   By not later than 15 October 2011, the seller will issue the announcements 
    in relation to the Transaction on the dates required in terms of the        
Listings Requirements of the JSE Limited.                                   
2.   That approval to this transaction be given by the shareholders of the      
    company before or on 30 November 2011.                                      
3.   That approval by the Competition Commission of Namibia to this transaction 
be obtained on or before 30 November 2011.                                  
The Transaction will become effective on the day payment is received for the    
transfer of the shares.                                                         
WITHDRAWAL OF CAUTIONARY                                                        
Shareholders are referred to the cautionary announcement dated 31 August 2011,  
and are advised that since all the terms of the disposal, as required per       
section 9.15 of the JSE Listings Requirements, have been disclosed, caution is  
no longer required to be exercised by shareholders when dealing in their        
securities.                                                                     
Johannesburg                                                                    
12 October 2011                                                                 
Sponsor on the JSE: KPMG                                                        
Sponsor on the NSX: Namibia Equity Brokers                                      
Date: 12/10/2011 09:28:29 Supplied by www.sharenet.co.za                     
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