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REDEFINE INCOME FUND LIMITED - FINANCIAL EFFECTS OF THE ACQUISITION BY REDEFINE

Release Date: 28/08/2003 12:45
Code(s): RDF
Wrap Text

REDEFINE INCOME FUND LIMITED - FINANCIAL EFFECTS OF THE ACQUISITION BY REDEFINE OF STANDARD BANK CENTRE, CAPE TOWN Redefine Income Fund Limited (Registration No. 1999/018591/06) Share Code: RDF ISIN Code: ZAE000023503 ("Redefine") FINANCIAL EFFECTS OF THE ACQUISITION BY REDEFINE OF STANDARD BANK CENTRE, CAPE TOWN Introduction Redefine linked unitholders are referred to the announcement published on 3 July 2003 in which Redefine advised linked unitholders that it had concluded an acquisition agreement with The Standard Bank of South Africa ("SBSA") for the acquisition of the property letting business conducted in respect of the Standard Bank Centre, located on the Cape Town foreshore ("the acquisition"). Financial effects of the acquisition The pro forma financial effects of the acquisition on historical earnings per Redefine linked unit set out in the table below have been prepared for illustrative purposes only, to provide Redefine linked unitholders with information on how the acquisition may have impacted on Redefine. Because of their nature, the pro forma financial effects may not give a fair reflection of the effect of the acquisition on future earnings. Cents before Cents after Change acquisition acquisition Earnings per 48.03(1) 44.73(2) -6.88% Redefine linked unit The decrease in the earnings per Redefine linked unit results from: the utilisation of historical property income on the acquisition price, which was based on higher projected income; and the interest rate on the borrowings of 13,82% (as indicated below), whilst relevant to the period of the calculation, is significantly higher than the actual rate of 11,27% negotiated with the funders. On this basis, the board of directors believe the acquisition will be yield enhancing for Redefine. The headline earnings per Redefine linked unit, which are substantially similar to distributions per Redefine linked unit, and net asset value per Redefine linked unit would not have changed materially Notes: (1)The historical earnings per Redefine linked unit as set out in the before acquisition column of the table are based on Redefine"s unaudited interim results for the six months ended 28 February 2003. (2)The historical earnings per Redefine linked unit as set out in the after acquisition column of the table is based on the assumptions that: the property was effectively acquired on September 2002; the acquisition was settled by the payment of the requisite cash and the issue of Redefine linked units on 1 September 2003; the net property income of the Standard Bank Centre for the six month period ending on 28 February 2003 was R14 386 000; and an interest rate of 13,82% on the additional borrowings of R109 million was utilised. Conditions precedent The acquisition is unconditional, save that the approval of the Competition Commission has not yet been obtained. Withdrawal of cautionary Redefine linked unitholders are no longer required to exercise caution in their dealings in Redefine linked units. Rosebank 27 August 2003 Corporate and Legal Advisor and Sponsor Java Capital Date: 28/08/2003 12:45:03 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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