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BLACKSTAR GROUP SE - Disposal of investment

Release Date: 23/11/2012 09:00
Code(s): BCK     PDF:  
Wrap Text
Disposal of investment

Blackstar Group SE
 (Registered in Malta with registration number SE 4)
 (registered as an external company with limited liability in the Republic of South Africa under
registration number 2011/008274/10)
Share code: BLCK LN and BCK SJ
ISIN: MT0000620105
(“Blackstar” or the “Company”)

23 November 2012

Disposal of investment

Blackstar is pleased to announce that it has concluded an agreement for the sale of 147,278,527
ordinary shares in New Bond Capital Limited (previously Mvelaphanda Group Limited) (“NBC”)
representing 28.3% of NBC’s issued ordinary share capital to FirstRand Bank Limited (“FRB”) (the
“Disposal”). The Disposal is for a cash consideration of R333 million (£23.7 million), represents 100%
of Blackstar’s interest in NBC and equates to R2.26 per NBC share. The Disposal was done at a
premium of 8.1% to its carrying value as reported by Blackstar on 8 November 2012, being the most
recently published intrinsic net asset value for the investment.

Blackstar generated a 27.5% return on investment in South African Rand and 12.9% return on
investment in Pounds Sterling, which equates to a 33.1% IRR and 15.4% IRR, respectively, over the
10 month holding period. Included in the returns shown above is the investment in Times Media
Group Limited (“TMG”) which was unbundled to NBC shareholders in September 2012. Blackstar
owns 14,692,305 TMG shares which were valued at R13.50 per share based on the closing bid price
on 21 November 2012 which equates to a total value of R198 million (£13.9 million).

Blackstar will continue to serve on the board of NBC as executives assisting with the process of
returning capital to shareholders and running the administration function. Blackstar will continue to
play a leading role in realising NBC’s investment in Batho Bonke Capital.

Blackstar will continue to focus its attention on assisting TMG management in unlocking further value
in TMG and Blackstar is optimistic about the long term prospects of the business.

Consistent with the capital management policy, the Board intends to apply the significant majority of
the cash proceeds from the Disposal to support Blackstar’s existing investments and pursue the
strong pipeline of attractive new investment opportunities that can deliver growth for all shareholders.
The Board intends paying a dividend to shareholders towards the end of the first quarter of 2013 with
the quantum and timing to be announced with the full year results.

Andrew Bonamour, director of Blackstar, commented, “NBC has been a landmark deal for Blackstar
and has reinforced the Company’s reputation of generating good returns from its investment.”

For further information,
please contact:

Blackstar Group SE               Bryan Moyer / Lesley Micallef     + 356 2144 6377
Liberum Capital Limited          Chris Bowman / Christopher        +44 (0) 20 3100 2222
                                 Britton
PSG Capital (Pty) Limited        David Tosi / Willie Honeyball     +27(0) 21 887 9602

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