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AFE - AECI Limited - AECI acquires water treatment business in Africa AECI LIMITED Incorporated in the Republic of South Africa (Registration No. 1924/002590/06) Share code: AFE ISIN No: ZAE000000220 ("AECI") AECI ACQUIRES WATER TREATMENT BUSINESS IN AFRICA AECI has entered into an agreement with General Electric ("GE") to acquire its world-class Chemical and Monitoring Solutions business in Africa, for a total consideration of US$20 million ("the Acquisition"). The Acquisition is effective from 1 July 2012 and will be merged into ImproChem, which is leading the AECI group`s strategic growth thrust to become the supplier of choice for specialty water treatment and process chemicals and services in Africa. The geographies covered by the Acquisition are Africa (excluding Algeria, Egypt, Libya, Morocco and Tunisia) and the Indian Ocean islands of Madagascar, Mauritius, Reunion, Rodrigues and the Seychelles. The market in these areas is growing strongly. The Acquisition components outside of South Africa are subject to approval by the South African Reserve Bank. ImproChem provides integrated water, energy and air solutions to the chemical, refining, petrochemical, mining and food and beverage industries. It already has a well-established footprint in Africa and the agreement with GE will ensure that customers covered by the Acquisition, where water is often a scarce resource, continue to have access to the most advanced technologies that enhance the efficiencies of their operations while reducing operating costs. GE had entered into a non-exclusive distribution arrangement with ImproChem in October 2011. In addition to the Acquisition, AECI and GE have now also entered into an exclusive distribution agreement and a licensing arrangement that provide GE with continued direct involvement with the business. As part of the Acquisition agreement, ImproChem will produce chemical products using GE formulations at its Umbogintwini plant. GE will also have the right to consider forming a joint venture with ImproChem in the future. GE remains committed to the CMS business, as demonstrated by its continued investment in CMS research and development and in its CMS commercial sales and distribution channels. Both GE and AECI believe that the new arrangement provides greater opportunities than either company could offer alone. It is well aligned with both companies` business models, both have a good reputation in the region and a well-regarded compliance culture. In addition, GE has an experienced team of sales people in the field and strong regional capabilities that will complement ImproChem`s resources. The Acquisition has been approved by the Competition Commission in South Africa. Woodmead, Sandton 28 June 2012 Merchant bank and sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 28/06/2012 08:00:01 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.
