WESCOAL HOLDINGS LIMITED - Financial effects of the Muhunga acquisition and withdrawal of the cautionary announcement

Financial effects of the Muhunga acquisition and withdrawal of the cautionary announcement

Wescoal Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
JSE Share Code: WSL ISIN: ZAE000069639
(“Wescoal” or “the company”)


FINANCIAL EFFECTS OF THE MUHANGA ACQUISITION AND WITHDRAWAL OF THE CAUTIONARY
ANNOUNCEMENT


1)      Introduction
Shareholders are referred to the SENS announcements dated 24 June 2014 regarding the Muhanga
acquisition.

2)      Financial effects

Below are the financial effects of the Muhanga acquisition.

The pro forma financial effects of the Muhanga acquisition on Wescoal shareholders set out below are
based on the reviewed results of Wescoal for the year ended 31 March 2014. The pro forma financial
effects are the responsibility of the board of directors of Wescoal and have been prepared for
illustrative purposes only and because of their pro forma nature may not fairly present Wescoal’s
financial position or results of operations after the Muhanga acquisition. The directors of Wescoal are
responsible for the preparation of the pro forma financial effects.


                                                               Wescoal
                                                             pro forma
                                            Wescoal            after the
                                            “before”         Muhanga
                                           reviewed        acquisition
                                      results for the      for the year
                                      year ended 31           ended 31
                                        March 2014         March 2014      % change
           Earnings per share
           (cents)                                  41.0           40.1       (2.2)
           Diluted earnings per
           share (cents)                            40.2           39.3       (2.2)
           Headline earnings per
           share (cents)                            15.7           14.8       (5.7)
           Diluted headline
           earnings per share6                      15.4           14.5       (5.8)
           Net asset value per
           share (cents)                          147.87        147.81            -
           Tangible net asset
           value per share
           (cents)                                 87.41          87.41           -
           Weighted average
           number of shares in
           issue (‘000)                          170 067       170 067
           Diluted Weighted
           average number of
           shares in issue (‘000)                173 484       173 484
           Total shares in issue
           (‘000)                                184 771       184 771
Notes:

1.   The “Wescoal Before” column has been extracted without adjustment from the published reviewed
     results of Wescoal Holdings Limited for the year ended 31 March 2014.
2.   For the purpose of calculating the earnings and headline earnings per share, it is assumed that
     the Muhanga acquisition was implemented on 1 April 2013 and for the purpose of calculating the
     net asset value and the net tangible asset value per share, it is assumed that the Muhanga
     acquisition was implemented on 31 March 2014.
3.   The “After the acquisition” net asset value per share and net tangible asset value per share
     includes the asset acquired of R42.5 million and the cash payment of R42.5 million.
4.   The “After the acquisition” earnings and headline earnings per share includes the after tax
     reduction in interest earned calculated at an interest rate of 5%.

3)       Withdrawal of cautionary announcement

Shareholders are advised that caution is no longer required to be exercised by shareholders when
dealing in Wescoal’s securities.


Corporate adviser & Sponsor to Wescoal                   Legal Adviser to Wescoal
Exchange Sponsors                                        KWA Attorneys

7 July 2014
Johannesburg

Date: 07/07/2014 11:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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