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VUN - Vunani Limited - Disposal by Vunani of its shareholding in BSI Steel Limited ("BSI") VUNANI LIMITED (Incorporated in the Republic of South Africa) (Registration number 1997/020641/06) JSE code: VUN ISIN: ZAE000110359 ("Vunani or the company") DISPOSAL BY VUNANI OF ITS SHAREHOLDING IN BSI STEEL LIMITED ("BSI") 1. INTRODUCTION In October 2007 Vunani, through its wholly owned subsidiary Vunani Capital (Proprietary) Limited, acquired 50 million shares in BSI. Shortly after this acquisition BSI listed on the JSE`s Alternative Exchange (AltX). BSI supplies steel products in South Africa and a number of other southern African markets. 2. DETAILS OF THE TRANSACTION On 11 February 2011 Vunani disposed of its entire shareholding in BSI at a price of 70 cents per share to Basfour 2052 CC for a total cash consideration of R34 999 858 ("the disposal"). The price of 70 cents per share was the ruling market price on 11 February 2011. There are no conditions precedent and no other significant terms of the agreement. 3. RATIONALE FOR THE DISPOSAL AND APPLICATION OF PROCEEDS The proceeds from the disposal of the investment have been utilised to reduce debt. 4. EFFECTIVE DATE The disposal is expected to settle on 18 February 2011. 5. FINANCIAL EFFECTS OF THE DISPOSAL Set out below are the pro forma financial effects of the disposal on the unaudited interim results published by Vunani in respect of the six months ended 30 June 2010. The pro forma financial effects are the responsibility of the directors of Vunani and have been prepared for illustrative purposes only, to provide information on how the disposal would have affected the previously published interim financial results and because of their nature may not fairly present Vunani`s financial position, changes in equity and results of operations. Before After Change
Cents Cents % Loss and diluted (2.5) (2.2) 12% loss per share Headline and (2.5) (2.2) 12% diluted headline loss per share Net asset value 5.2 5.3 2% per share Net tangible asset 3.7 3.8 3% value per share Notes: 1. The "Before" column presents Vunani`s unaudited interim results for the 6 month period ended 30 June 2010 prior to the disposal. 2. The "After" column indicates the pro forma results for Vunani for the 6 month period ended 30 June 2010 after the disposal. 3. For the purpose of calculating earnings per share (basic and diluted) and headline earnings per share (basic and diluted), the transactions took place on 1 January 2010. 4. For the purpose of calculating net asset value and net tangible asset value per share, the disposal took place on 30 June 2010. 5. At 30 June 2010, the net assets, being the 50 million BSI shares, subject to the disposal were valued at R31.5m. 6. During the six month period ended 30 June 2010 no dividends were received from the investment and a fair value adjustment of R1.5m was recognised in the statement of comprehensive income. 7. It has been assumed that the proceeds on the disposal of the asset have been applied to reduce debt, which would have resulted in an interest saving of R2.8m for the period ended 30 June 2010. 6. CLASSIFICATION OF THE DISPOSAL The disposal is classified as a Category 2 transaction in terms of the Listings Requirements of the JSE Limited. Sandton 16 February 2011 Independent Designated Adviser Grindrod Bank Limited Date: 16/02/2011 12:29:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
