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REDEFINE INCOME FUND: ANNOUNCEMENT OF THE ACQUISITION OF LINKED UNITS

Release Date: 20/05/2002 17:10
Code(s): RDF
Wrap Text

REDEFINE INCOME FUND: ANNOUNCEMENT OF THE ACQUISITION OF LINKED UNITS Redefine Income Fund Limited (Incorporated in the Republic of South Africa) (Registration No.1999/018591/06) ("Redefine") JSE share code: RDF ISIN: ZAE000023503 ANNOUNCEMENT OF THE ACQUISITION OF LINKED UNITS Introduction Further to the cautionary announcement published on 8 May 2002, Corpcapital Corporate Finance is authorised to announce that Redefine, through its wholly owned subsidiary Outward Investments (Pty) Ltd ("Outward") has concluded an agreement (the "acquisition") with Sanlam Investment Management (Proprietary) Limited ("Sanlam") for the acquisition by Outward of linked units in SA Retail Limited in consideration for which Outward will pay cash and issue Redefine units. 1. Rationale for the acquisition The board of directors of Redefine is of the opinion that the SA Retail linked units, which Redefine intends holding as a long term investment, will enhance the overall quality of Redefine`s listed security portfolio. In addition, the transaction will result in Sanlam acquiring a significant stake in Redefine, thereby increasing Redefine`s institutional shareholder base. 2. The acquisition 2.1. Outward has acquired from Sanlam, with effect from 15 May 2002, 36 450 000 linked units in SA Retail Limited ("SA Retail linked units") in consideration for which Outward will pay R164 025 000, to be discharged as follows: 2.1.1. R82 012 500 in cash; and 2.1.2. R82 012 500 by the issue of 36 450 000 Redefine linked units, to be issued at R2.25 per linked unit. 2.2. The acquisition is subject to seller`s warranties that are standard for a transaction of this nature. 3. Financial Effects The pro forma financial effects of the acquisition on the earnings per Redefine linked unit is illustrated in the table below: Cents per Cents per
linked unit linked unit before after Change acquisition acquisition % Earnings per linked unit (1) (28,53) (22,82) 20,02 (1) The earnings per Redefine linked unit as set out in the "before acquisition" column of the table, are based upon Redefine`s interim results for the six month period ended 28 February 2002. Earnings per Redefine linked unit, as set out in the "after acquisition" column of the table, is based upon the assumption that the additional SA Retail linked units were acquired on 1 September 2001 and the acquisition was settled by payment of the requisite cash amount and issue of Redefine linked units, on that date. The income on the SA Retail linked units was based on the distribution for the period from 12 November 2001, the date of listing, to 31 March 2002 and was bi-annualised for a period of six months. This amount may not be indicative of future distributions made by SA Retail Limited. The effect on the headline earnings and net asset value per Redefine linked unit as a result of the acquisition of the SA Retail linked units is not material. 4. Circular A circular containing the details of the acquisition will be sent to Redefine linked unit holders within 28 days of this announcement. 5. Extension of Cautionary Announcement Redefine linked unit holders are referred to the cautionary announcement published by Redefine on 8 May 2002 and are advised that Redefine is still involved in negotiations which, if successfully concluded, may have a material effect on the price of Redefine linked units. Unit holders are therefore advised to continue to exercise caution in dealing in their linked units. Johannesburg 20 May 2002 Corporate advisors and sponsor Corpcapital Corporate Finance a sponsor registered with the JSE Securities Exchange South Africa Reporting accountants and auditors Fisher Hoffman PKF (Jhb) Inc. Chartered Accountants (SA) Registered Accountants & Auditors (Registration number 1994/001166/21) Legal Advisors Corpcapital Transaction Support Date: 20/05/2002 05:09:00 PM Produced by the SENS Department

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