WESCOAL HOLDINGS LIMITED - Financial effects on acquisition of a coal trading business from Third party,withdrawal of cautionary announcement

Financial effects on acquisition of a coal trading business from Third party,withdrawal of cautionary announcement

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WESCOAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
JSE Share code: WSL & ISIN: ZAE00069639
("Wescoal" or "the Company")


FINANCIAL EFFECTS ON THE ACQUISITION OF A COAL TRADING BUSINESS FROM
THE THIRD PARTY AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT


1.     FINANCIAL EFFECTS

Shareholders are referred to the announcement released on SENS on 13 June 2013, where it
was announced that Chandler Coal Proprietary Limited, a wholly owned subsidiary of
Wescoal, had made an offer to acquire a coal trading business from a Third party (“Third
party”)(„the acquisition”).

Below are the financial effects of the acquisition:

Pro forma financial effects of the acquisition
The unaudited pro forma financial effects of the acquisition on Wescoal shareholders set out
below are based on the unaudited results of Wescoal for the six months ended 30 September
2012. The unaudited pro forma financial effects are the responsibility of the board of directors
of Wescoal and have been prepared for illustrative purposes only and because of their pro
forma nature may not fairly present Wescoal's financial position or results of operations after
the acquisition. The directors of Wescoal are responsible for the preparation of the unaudited
pro forma financial effects.

                                                 “Before the         Pro forma
                                                acquisition”          “After the
                                                  unaudited       acquisition”
                                             interim results         unaudited
                                                  for the six        for the six
                                             months ended        months ended
                                              30 September       30 September        %
                                                           (1)
                                                      2012                 2012    Change
Earnings per share
        (2)(5)
(cents)                                                  6.80             10.51        55%
Headline earnings per
               (2)(5)
share (cents)                                            6.90             10.62        54%
Net asset value per
               (3)(4)
share (cents)                                          106.22            106.22             -
Net tangible asset value
                      (3)(4))
per share (cents)                                       61.04             30.01       (51%)
Weighted average
shares in issue („000)                                157 931           157 931
Shares in issue at year
end („000)                                            157 931           157 931
                                                                                                  2



 Notes:

     1)    The „before the acquisition? has been extracted from the published unaudited results
           of Wescoal for the six months ended 30 September 2012.
     2)    The basic earnings and headline earnings per share were calculated as if the
           acquisition took place on 1 April 2012.
     3)    The net asset value and net tangible asset value per share were calculated as if the
           acquisition took place on 30 September 2012.
     4)    The "After the acquisition" net asset value and net tangible asset value per share have
           been adjusted to include the following:
           *The property, plant and equipment and inventories of the Third party;
           *Goodwill of R49 million has been raised on the acquisition;
           *Cash and cash equivalents has been reduced by the cash portion of the purchase
           price of R20 million;
           *Long term borrowings have increased by R59 million relating to the loan raised for
           the balance of the purchase price.
     5)    The "After the acquisition" basic earnings per share and headline earnings per share
           have been adjusted to include the following adjustments:
           *transaction costs of R1 million was written off to expenses;
           *an additional finance cost of R2.5 million on the loan of R59 million, bearing interest
           at 8.5% per annum. Taxation calculated at 28%;
           *the after tax earnings of the Third party based on management accounts for the six
           months ended 31 August 2012. Wescoal is satisfied with the quality of the
           management accounts.

2.        WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

Shareholders are advised that caution is no longer required to be exercised by shareholders
when dealing in Wescoal?s securities.


Sponsor
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Johannesburg
21 June 2013

Date: 21/06/2013 01:14:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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