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Sekunjalo Investments Limited - General issue of ordinary shares for cash Sekunjalo Investments Limited (Incorporated in the Republic of South Africa) (Registration number 1996/006093/06) Share code: SKJ & ISIN: ZAE000017893 ("Sekunjalo" or "the company") GENERAL ISSUE OF ORDINARY SHARES FOR CASH Introduction Shareholders are advised that Sekunjalo has issued a total of 20 000 000 ordinary shares for cash, in terms of the general authority to issue shares for cash granted by Sekunjalo shareholders at the annual general meeting held on Thursday, 3 February 2005 ("the cash issues"). Consideration and number of new Sekunjalo ordinary shares issued in terms of the cash issues Details of the cash issues undertaken during the current financial year are set out below. Date Number of Issue Cash value Details shares price (R) issued (cents) 2 8 000 000 60 4 800 000 Issued at a premium of September 1.7% to the 30 day 2005 weighted average traded price prior to 22 August 2005
15 2 000 000 60 1 200 000 Issued at a premium of 7% September to the 30 day weighted 2005 average traded price prior to 5 September 2005
10 10 000 000 75 7 500 000 Issued at a discount of 4% February to the 30 day weighted 2006 average traded price prior to 9 February 2006
Total 20 000 000 13 500 000 A total cash amount of R13 500 000 has been raised in terms of the cash issues and the new Sekunjalo ordinary shares issued in terms of the cash issues rank pari passu with the existing issued ordinary shares. The cash issues were undertaken in order to reduce short term borrowings incurred to fund Sekunjalo acquisitions and to facilitate investment in subsidiaries for expansion purposes. Financial effects of the cash issues The pro forma financial effects of the cash issues on earnings ("EPS"), headline earnings ("HEPS"), net asset value ("NAV") and tangible net asset value ("NTAV") per share are set out below. This unaudited pro forma financial information has been prepared for illustrative purposes only and because of its nature may not give a fair reflection of Sekunjalo"s financial position and results of operations, nor the effect and impact of the cash issues going forward and is the responsibility of Sekunjalo"s directors. Before (1) After (2) Change
(%) EPS (cents) 14.69 14.22 (3.20) HEPS (cents) 4.76 4.78 0.42 NAV & NTAV for the group 57.50 58.16 1.14 (consolidated) (cents) NTAV for the group 37.11 39.11 5.39 (consolidated) (cents) NAV for the company, Sekunjalo 291.00 291.00 Investments Limited (cents) Number of shares for EPS and 255 120 268 453 HEPS purposes ("000) Number of shares for NAV and 283 840 303 840 NTAV ("000) Notes: Based on Sekunjalo"s audited results for the year ended 31 August 2005. Based on the assumption that the cash issues took place on 1 September 2004 for income statement purposes and on 31 August 2005 for balance sheet purposes. After taking into account the adjustment for a reduced interest expense as a result of R9 million of the total cash amount raised in terms of the cash issues being used to reduce Sekunjalo"s short term borrowings. The reduced interest expense was arrived at by using 11%, being the average interest rate incurred by Sekunjalo on its long-term borrowings for the year ended 31 August 2005. An adjustment to EPS and HEPS has not been made for the remaining R4.5 million raised in terms of the cash issues as this amount was used for expansion purposes in subsidiaries. The results for the six months ending 28 February 2006 will be prepared in terms of International Financial Reporting Standards ("IFRS"). The impact of any adjustments that may be made in adopting IFRS have not been taken into account in calculating the above financial effects. Cape Town 17 February 2006 Investment bank and sponsor Nedbank Capital Date: 17/02/2006 12:50:04 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
