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SKJ - Sekunjalo - General Issue of ordinary shares for cash and withdrawal of cautionary announcement 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 AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Introduction Shareholders are advised that Sekunjalo has issued a total of 53 929 000 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 27 February 2007 ("the cash issues"). Details of the cash issues undertaken during the current financial year are set out below. Date Number of shares Issue price Cash value Detailsissued (cents) (R) 20 December 2006 6 329 000 79 4 999 910 Issued at a discount of 10% to the 30 day weighted average traded
price prior to 12 December 2006 16 February 2007 10 000 000 75 7 500 000 Issued at a discount of 10% to the 30 day weighted
average traded price prior to 14 February 2007
14 March 2007 1 600 000 73 1 168 000 Issued at a discount of 10% to the 30 day
weighted average traded price prior to 7 March 2007
7 May 2007 10 000 000 80 8 000 000 Issued at a discount of 2.4% to the 30
day weighted average traded price prior to 15 May 2007
21 May 2007 26 000 000 82 21 320 000 Issued at a discount of 3% to the 30 day
weighted average traded price prior to 15 May 2007
A total cash amount of R42 987 910 has been raised in terms of the cash issues since 31 August 2006 with R30 488 000 being raised since 28 February 2007 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 borrowings incurred to fund Sekunjalo acquisitions and to facilitate investment in subsidiaries for expansion purposes. The last 2 issues for cash totalling R29 320 000 are currently being held in cash and will be utilised to reduce borrowings. Absa Corporate and Business Bank ("ACBB"), a division of Absa Bank Limited, has acquired 5 million of the shares issued on 7 May 2007 and the 26 million shares most recently issued, representing approximately 7% of the issued share capital of the company. Furthermore, ACBB has an option to acquire up to 9.9% of the issued share capital of the company within a 180 day period, subject to the company, in general meeting, approving such further acquisition. ACBB will act as a strategic partner to assist Sekunjalo with their funding requirements as they embark on their new strategy to invest in large scale broad based black economic empowerment opportunities in quality businesses. 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 After (2) Change (%) EPS (cents) 2.91 2.97 2.01% HEPS (cents) 2.91 2.97 2.01% NAV for the group (consolidated) (cents) 101.62 99.85 -1.75% NTAV for the group (consolidated) (cents) 69.59 70.59 1.43% Number of shares for EPS and HEPS purposes (`000) 370 829 408 429 Number of shares for NAV and NTAV (`000) 396 795 434 395 Notes: Based on Sekunjalo`s unaudited results for the 6 month period ended 28 February 2007. Based on the assumption that the cash issues took place on 1 September 2006 for income statement purposes and on 28 February 2007 for balance sheet purposes. After taking into account the adjustment for a reduced interest expense as a result of R30.488 million of the total cash amount raised in terms of the cash issues being used to reduce Sekunjalo`s borrowings. The reduced interest expense was arrived at by using 12.11%, being the average interest rate incurred by Sekunjalo on its borrowings for the 6 month period ended 28 February 2007. All calculations have been reviewed by the company auditors. The cautionary announcement released on SENS on Friday, 11 May 2007, and in the press on Monday, 14 May 2007, is hereby withdrawn and shareholders no longer need to exercise caution when dealing in the securities of the company. Cape Town 23 May 2007 Investment bank and sponsor ABSA Capital Date: 23/05/2007 07:00:06 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.
