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Steers Holdings Limited - Acquisition of Regional Master License

Release Date: 24/07/2002 10:01
Code(s): STE
Wrap Text

Steers Holdings Limited - Acquisition of Regional Master License Agreement The acquisition Steers Holdings Limited is authorized to announce that a wholly owned subsidiary, Firststeers Fastfood Franchise Company (Pty) Ltd, has concluded an agreement with BBG`s Food Services CC to acquire the Eastern Cape Master License Agreement, on the terms and conditions as detailed below, with effect from the 1 October 2002. The acquisition entails the buying back of the Regional License Agreement for the marketing of the Steers, Debonairs Pizza and FishAways brands in the Eastern Cape region, as well as the business related to the distribution of products and services to the Eastern Cape franchise network. This transaction is in line with the Steers` stated strategy to directly manage and control the growth of our brands within South Africa rather than to sub contract to 3rd party entrepreneurs via licensing agreements, an iniative used effectively during Steers` pioneering phase and prior to listing. The acquisition is subject to the satisfactory outcome of a due diligence investigation. Purchase consideration The consideration payable for the purchase of the business is R 7 800 000, which amount will be settled in cash on the effective date. Financial effects Had the acquisition been effective at the beginning of the financial year commencing 1 March 2001, the effect on Steers` earnings and headline earnings per share for the year ended 28 February 2002, and the effect on net assets per share as at the 28 February 2002 would have been as follows: Audited Pro forma Increase / Results for results after (Decrease) the year the
ended 28 acquisition February 2002 Earnings per 16.9 18.5 9.4% share Headline 17.3 19.6 12.8% earnings per share Net asset 118.2 119.7 1.3% value per share Johannesburg 24 July 2002 Sponsor HSBC Date: 24/07/2002 10:00:10 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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