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MVG - Mvelaphanda Group Limited - Disposal of its remaining interest in Life Healthcare Group Holdings Limited Mvelaphanda Group Limited (Incorporated in the Republic of South Africa) Registration number: 1995/004153/06 Ordinary share code: MVG Ordinary share ISIN: ZAE000060737 ("Mvela Group" or "the Company") DISPOSAL OF ITS REMAINING INTEREST IN LIFE HEALTHCARE GROUP HOLDINGS LIMITED ("Life Healthcare") 1. THE TRANSACTION
Shareholders of Mvela Group are advised that the Company has disposed of its remaining interest in Life Healthcare through two separate disposal transactions ("the Disposals").
Mvela Group disposed of 7 749 921 ordinary shares in Life Healthcare for R192 775 812.00 during the period 5 April 2012 to 12 April 2012, on the open market, for a total cash consideration of R192 775 812.00 ("the Open Market Disposal"). In addition, the collar option transaction entered into with a commercial bank as reported to shareholders on SENS on 21 July 2011, consisting of 7 000 000 ordinary shares in Life Healthcare was effected on 4 April 2012 for a total cash consideration of R135 366 329.12, as opposed to the deemed value of R122 500 000 previously announced ("the Collar Transaction Disposal").
Even though the Collar Transaction Disposal was previously reported as if it had been effected, for the sake of prudency the details and the financial effects of the Collar Transaction Disposal have been included in the announcement. 2. BUSINESS CARRIED ON BY LIFE HEALTHCARE Life Healthcare is a leading private hospital operator in South Africa. 3. RATIONALE The Disposals are part of Mvela Group`s value unlocking strategy in order to realise value for its shareholders. 4. APPLICATION OF PROCEEDS
The sale proceeds will be utilised in the most appropriate manner as determined by the board. 5. CONSIDERATION RECEIVED
The total cash consideration received in respect of the Disposals was R328 142 141.12. 6. JSE LIMITED ("JSE") CATEGORISATION The Collar Transaction Disposal has previously been categorised in terms of the JSE Listings Requirements. The Open Market Disposal is categorised in terms of the JSE Listings Requirements as a category 2 transaction. 7. FINANCIAL EFFECTS The unaudited pro forma financial effects of the Disposals as set out below, have been prepared to assist Mvela Group shareholders in assessing the impact of the Disposals on the Company`s historical earnings per share, headline earnings per ordinary share, net asset value per ordinary share and net tangible asset value per ordinary share. Unaudited Pro Forma Change (%) before the after the
Disposals Disposals (Cents per (Cents per share) share) Basic earnings 16.7 19.9 19.5% per share Basic headline 16.7 19.9 19.5% earnings per share Net asset value 423.9 427.4 0.8% per share Net tangible 423.9 427.4 0.8% asset value per share Notes and assumptions:
1. The basic earnings per share and basic headline earnings per share figures in the "Pro Forma after the Disposals" column have been calculated on the basis that the Disposals were effected on 1 July 2011.
2. The net asset value per share and the tangible net asset value per share figures in the "Pro Forma after the Disposals" column have been calculated on the basis that the Disposals was effected on 31 December 2011. 3. Interest on the purchase consideration received has been calculated based on the ruling prime interest rate from time to time. The taxation rate applicable is assumed to be 28%. 4. The basic earnings per share and basic headline earnings per share figures are calculated based on weighted average number of shares in issue of 529 426 000 shares as at 31 December 2011. 5. The net asset value per share and net tangible asset value per share have been calculated based on 529 708 365 shares in issue as at 31 December 2011. 16 April 2012 Johannesburg Sponsor: PSG Capital Date: 16/04/2012 13:03:04 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.
