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AECI - Chemical Services Limited concludes empowerment transaction with the Tiso

Release Date: 29/08/2005 08:22
Code(s): AFE
Wrap Text

AECI - Chemical Services Limited concludes empowerment transaction with the Tiso Group AECI LIMITED Incorporated in the Republic of South Africa (Registration No. 1924/002590/06) Share code: AFE ISIN No. ZAE000000220 29 August 2005 CHEMICAL SERVICES LIMITED CONCLUDES EMPOWERMENT TRANSACTION WITH THE TISO GROUP The sale of a 25.1 percent interest in ImproChem (Pty) Limited (ImproChem) to the Tiso Group (Tiso) has been concluded for a total consideration of R94 million. ImproChem is a leader in the supply of products and services to the water management and hydrocarbon processing sectors. The company serves any industry where water, energy and efficiency are of primary importance, including electronics, food and beverage processing, chemicals, petroleum and refining, steel, mining, power generation, metalworking and others. It offers on-site solutions by providing products, services, equipment and technologies that enhance the profitability of its customers" business operations. A licence agreement with the Nalco Company of the USA, the global leader in water treatment, ensures access to advanced technology and expertise. ImproChem is a subsidiary of speciality chemicals group Chemical Services Limited (Chemserve), a member of the AECI Group (AECI). ImproChem"s manufacturing facilities are at Umbogintwini, south of Durban, and the company has offices across South Africa and in Kenya, Mauritius, Namibia, Zambia and Zimbabwe. The agreement reached is the second empowerment transaction concluded between AECI and Tiso and builds on the relationships established with Tiso"s acquisition of 25.1 per cent of African Explosives Limited (AEL) in 2004. It is in line with commitments made at that time whereby Tiso would be afforded first option to take up future empowerment participation opportunities in the AECI Group. Tiso views its newly-acquired stake in ImproChem as a long-term strategic holding and, as in the case of its involvement in AEL, a step in developing a long-term partnership with AECI. This is the most significant economic empowerment transaction concluded at operating company level within Chemserve and is thus a milestone for the group. The partnership takes effect on 1 September 2005. Nkululeko Sowazi, Mbonisi Danisa and Peter van Kerckhoven (Alternate) from Tiso will join Louis du Toit (Managing Director), Johan Kuhn and Mark Dytor (Chairman) on the Board of ImproChem. Ends. Enquiries: ImproChem (Pty) Limited Louis du Toit, Managing Director 011 971 0400 or e-mail: improchem@improchem.co.za Chemical Services Limited Frank Baker, Managing Director 011 548 4610
Tiso Group (Pty) Limited Nkululeko Sowazi, Deputy Chairman Fani Titi, Chairman 011 549 2400
Date: 29/08/2005 08:22:04 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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