BEL - Bell - Announcement Of Bell Equipment Limited Broad Based Black

BEL - Bell - Announcement Of Bell Equipment Limited Broad Based Black           
              Economic Empowerment Transaction                                  
BELL EQUIPMENT LIMITED                                                          
(Incorporated in the Republic of South Africa)                                  
Registration number 1968/013656/06                                              
Share Code: BEL & ISIN: ZAE000028304                                            
(`Bell` or `the Company`)                                                       
ANNOUNCEMENT OF BELL EQUIPMENT LIMITED Broad Based Black Economic               
Empowerment transaction                                                         
In line with a Board strategy formalized in 2004, the Directors of Bell are     
pleased to announce a BBBEE deal which will result in 27% BBBEE ownership       
in our South African Sales and Customer Service Operations, including the       
local Wesbank Finance joint venture. As this is the first deal amongst the      
larger earthmoving equipment companies it is of particular importance to        
our South African customers.                                                    
After an extensive search, evaluation, interaction, due diligence and           
negotiation the Board selected to partner with Kagiso Strategic Investments     
lll (Pty) Ltd (`KSI`), a wholly owned subsidiary of Kagiso Trust                
Investments (Pty) Ltd. KSI will subscribe for 22.5% of the shares of a          
newly incorporated Bell group subsidiary, Bell Equipment Sales South Africa     
Limited, (`BESSA`) for R79.5 million, in line with an independent               
professional valuation. Subject to final legal agreements and regulatory        
approval, the transaction will be effective 1 January 2008.                     
In addition, Bell South Africa employees will subscribe for 7.5% of the         
shares in BESSA.  They will own the shares in own name rather than via a        
trust which the company feels is more in line with the spirit of true           
empowerment. The company will finance the employees` purchase, repayable        
from dividends and/or shareholder loan repayments.                              
To maximise the benefit from these transactions, all Bell South Africa          
operations have embarked on transformation programmes to optimise their         
BBBEE scores across all seven elements of the Department of Trade and           
Industry scorecard. This should result in Bell customers qualifying for 80%     
of their purchases as BEE spend from 2008 and in due course 100%. This is       
especially relevant for the mining and construction customers (and their        
contractors and plant hire suppliers) who are dependent on licenses and         
contracts from government. It will allow the group to maximise the benefits     
flowing from the long term positive outlook for mining, infrastructure and      
construction.                                                                   
BESSA will be headed up by Bokkie Coertze, currently the Managing Director      
of the Bell SA Sales and Distribution Operations, and will have a majority      
of black Directors.                                                             
The effect of this transaction on NAV in 2008 will be an increase of 9          
cents, while EPS will drop by 23 cents with the decrease in 2009 being          
envisaged to increase from 23 cents to 28 cents.                                
Richards Bay                                                                    
31 October 2007                                                                 
INVESTEC BANK LIMITED                                                           
SPONSORS                                                                        
Date: 31/10/2007 11:00:59 Supplied by www.sharenet.co.za                     
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