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CSP - Chemspec - Mica / ChemSpec announcement

Release Date: 21/09/2011 17:14
Code(s): CSP
Wrap Text

CSP - Chemspec - Mica / ChemSpec announcement Chemical Specialities Limited Incorporated in the Republic of South Africa) Registration number (2005/039947/06) Share code: CSP ISIN: ZAE000109427 ("Chemspec" or "the Company") MICA / CHEMSPEC ANNOUNCEMENT ChemSpec and Mica today announced that they had reached an agreement in principal regarding the sale to Mica Holdings Ltd of ChemSpec Franchises under the brand name House of Paint. The agreement will see both owned and franchised stores trading under these brand names, continuing business as usual, but with the backing of the well established management infrastructure of Mica. Stores currently owned by ChemSpec will be governed by a Franchise Agreement between ChemSpec and Mica and will in time be sold off to independent Franchisees. Currently Franchised stores will continue with business as usual in a seamless transaction for franchisees` customers and suppliers. Bruce Mackinnon, Chief Executive of ChemSpec said, "ChemSpec is in a turnaround process which is well on its way. As part of this turnaround process the business is being simplified where ChemSpec returns to manufacturing and distributing paint. This deal is in line with our strategy to exit retail and increase turnover through our association with blue chip distributors. He went on to say it eliminates a conflict of interest between ChemSpec and its broad range of customers and simplifies the administration and distribution process". Clifford Buchler, the Managing Director of Mica said, "It was a win win deal for all parties. Mica understands the franchise model and will add value to this franchise.The Mica Group specialises in the retail market and this franchise offering provided with a broader base going into the future. The intention is to grow this franchise model nationally which will automatically create greater opportunities for suppliers. We aim to develop the House of Paint brand whereby a broader range of paint and allied products is available to the consumer from one dedicated paint outlet." This deal is effective 1 October 2011. Durban 21 September 2011 Corporate and designated advisor Grindrod Bank Limited Date: 21/09/2011 17:14:01 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.

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