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RIN - Redefine Properties International Limited - Financial effects of

Release Date: 01/12/2011 14:54
Code(s): RIN
Wrap Text

RIN - Redefine Properties International Limited - Financial effects of underwriting of Cromwell capital raising and withdrawal of cautionary announcement Redefine Properties International Limited (Incorporated in the Republic of South Africa) (Registration number 2010/009284/06) JSE share code: RIN ISIN Code: ZAE000149282 ("RIN" or "the company") FINANCIAL EFFECTS OF UNDERWRITING OF CROMWELL CAPITAL RAISING AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT INTRODUCTION Linked unitholders are referred to the announcement released on SENS on 22 November 2011 in terms of which it was advised that the company`s London Stock Exchange-listed subsidiary, Redefine International P.L.C. ("RI PLC") had concluded an agreement ("the underwriting agreement") to partially underwrite a capital raising by the Cromwell Property Group ("Cromwell")("the transaction"). The purpose of this announcement is to set out the financial effects of the transaction assuming that RI PLC is required to fulfill its entire underwriting commitment up to the maximum aggregate amount of AUD35 million. FINANCIAL EFFECTS The unaudited pro forma financial effects have been prepared for illustrative purposes only to provide information on how the transaction may have impacted on the historical financial results of RIN for the year ended 31 August 2011. Due to their nature, the unaudited pro forma financial effects may not fairly present RIN`s financial position, changes in equity, results of operations or cash flows after the transaction. The unaudited pro forma financial effects are the responsibility of the directors of RIN and have not been reviewed or reported on by RIN`s auditors. The unaudited pro forma financial effects of the transaction on RIN`s basic earnings per linked unit, headline earnings per linked unit and distribution per linked unit for the year ended 31 August 2011 are set out below. The unaudited pro forma financial effects of the transaction on RIN`s net asset value and net tangible asset value per linked unit are not signficant and have not been disclosed. Unadjusted Pro forma Change before the after the
transaction transaction (pence) (pence) Basic earnings per linked unit 3.17 3.57 12.6% Headline earnings per linked unit 6.35 6.75 6.3% Distribution per linked unit 4.11 4.48 9.0% Weighted average number linked units 345 685 929 - in issue 345 685 929 Actual number of linked units in - issue 372 305 640 372 305 640 Notes and assumptions: - The amounts set out in the "Unadjusted before the transaction" column have been extracted, without adjustment, from the published reviewed condensed consolidated results of RIN for the year ended 31 August 2011. - It has been assumed that RI PLC will be obliged to fulfil its entire underwriting commitment of AUD 35 million. - It has been assumed that 51 470 588 new Cromwell stapled securities will be issued in terms of the entitlement offer at a price of AUD0.68 per stapled security. - RI PLC is entitled to a fee of AUD875 000 in consideration for providing its underwriting commitment. - Approximately a third of the AUD35 million will be funded through an existing facility with Investec Bank (Australia) Limited at an interest rate of 9.5% per annum, being a rate equal to 4% per annum over the Australian Bank Bill Swap Bid Rate. The balance of the AUD 35 million underwriting commitment will be funded from available cash resources. - The equity accounted profits of Cromwell have been based on the historical distributions made by Cromwell in respect of the quarter ended 30 September 2010, the quarter ended 31 December 2010, the quarter ended 31 March 2011 and the quarter ended 30 June 2011. This equates to a distribution of GBP2.2 million (net of a 5% withholding tax), being AUD3.4 million translated from Australian dollars to pounds sterling using an exchange rate of GBP1.00:AUD1.53. - As a result of the institutional placement of new Cromwell stapled securities to raise AUD31 million and other placements of Cromwell stapled securities which have been concluded by Cromwell subsequent to its year ended 30 June 2011, RI PLC`s interest in Cromwell is assumed to remain at approximately 21.7% subsequent to the transaction. - All adjustments have a continuing effect. WITHDRAWAL OF CAUTIONARY Linked unitholders are referred to the cautionary announcement dated 22 November 2011 and are advised that following the release of the financial effects of the transaction, caution is no longer required to be exercised by linked unitholders when dealing in their linked units. 1 December 2011 Sponsor to Redefine Properties International Limited Java Capital Date: 01/12/2011 14:54:15 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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