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UNITRANS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1967/003403/06)
("UNITRANS")
STEINHOFF INTERNATIONAL HOLDINGS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1998/003951/06)
("STEINHOFF")
FURTHER ANNOUNCEMENT REGARDING THE FORMATION OF A HOUSEHOLD GOODS E-COMMERCE
MARKETPLACE
INTRODUCTION
FURTHER TO THE JOINT ANNOUNCEMENT ISSUED BY UNITRANS, STEINHOFF AND MURRAY AND
ROBERTS HOLDINGS LIMITED ("M&R") ON 19 MAY 2000, GENSEC BANK LIMITED IS
AUTHORISED TO ANNOUNCE FURTHER DETAILS REGARDING THE FORMATION OF THE
E-COMMERCE INITIATIVES REFERRED TO THEREIN.
THE JOHANNESBURG STOCK EXCHANGE HAS GRANTED A LISTING FOR THE 5 539 000
UNITRANS SHARES THAT HAVE BEEN ISSUED TO STEINHOFF FOR CASH AT 2 000 CENTS PER
SHARE. THE DISPOSAL BY M&R OF 5 000 000 UNITRANS SHARES AT 2 000 CENTS PER
SHARE TO COLLECTIVELY, AN INSTITUTIONAL INVESTOR, STEINHOFF AND THE UNITRANS
LIMITED SHARE TRUST HAS BEEN FINALISED.
THE DISPOSAL BY STEINHOFF'S ROADWAY DIVISION ("ROADWAY") OF ITS HOUSEHOLD GOODS
LOGISTICS AND DISTRIBUTION OPERATION ("THE OPERATION") TO VECTO TRADE 304 (PTY)
LIMITED (IN THE PROCESS OF CHANGING ITS NAME TO ROADWAY LOGISTICS (PTY)
LIMITED) A COMPANY JOINTLY CONTROLLED BY UNITRANS AND STEINHOFF ("THE JV"), HAS
TAKEN EFFECT ON 30 JUNE 2000 BASED ON THE AUDITED NET ASSET VALUE OF THE
OPERATION AS AT THAT DATE.
AN AGREEMENT HAS NOW BEEN CONCLUDED BETWEEN UNITRANS, STEINHOFF, COMPAREX
HOLDINGS LIMITED ("COMPAREX") AND VARIOUS HOUSEHOLD GOODS INDUSTRY PLAYERS IN
TERMS OF WHICH:
- COMPAREX, THROUGH ITS SOUTH AFRICAN SUBSIDIARY, PERSETEL Q-DATA AFRICA (PTY)
LIMITED ("PQ AFRICA"), WILL CO-ORDINATE AND MANAGE THE FORMATION AND OPERATION
OF A HOUSEHOLD GOODS ELECTRONIC COMMERCE MARKET PLACE ("THE HUB");
- UNITRANS, THROUGH THE JV, WILL PROVIDE THE LOGISTICS EXPERTISE AND SERVICES
THAT WILL BE REQUIRED BY THE HUB; AND
- CERTAIN MAJOR RETAILERS OF FURNITURE AND HOUSEHOLD GOODS WILL, ON AN
ARMS-LENGTH AND MARKET RELATED BASIS, BECOME PARTICIPANTS IN THE HUB AND
UTILISE ITS SERVICES IN PROCURING THEIR SOURCING OF PRODUCTS ON A PREFERRED
SUPPLIER BASIS.
THE HUB
UNITRANS AS A LEADING DIVERSIFIED, LOGISTICS AND TRANSPORT COMPANY IN SOUTHERN
AFRICA, WILL THROUGH THE JV, BECOME THE PREFERRED LOGISTICS FULFILMENT PARTNER
IN THE HUB. COMPAREX AND THE JV WILL NOMINATE THE FIRST BOARD OF DIRECTORS OF
THE HUB AND WILL BE THE HUB'S MANAGING SHAREHOLDERS. NO SINGLE SHAREHOLDER IN
THE HUB WILL BE CAPABLE OF EXERCISING MORE THAN 25% OF ITS VOTING POWER.
COMPAREX IS A LEADING INFORMATION TECHNOLOGY COMPANY OPERATING IN SOUTHERN
AFRICA AND EUROPE, AND PROVIDES A COMPREHENSIVE RANGE OF ELECTRONIC COMMERCE
SERVICES AND FACILITIES WHICH, IN SOUTHERN AFRICA, ARE PROVIDED BY PQ AFRICA
AND ITS SUBSIDIARIES.
THE HUB IS BEING SUPPORTED BY LEADING HOUSEHOLD GOODS MANUFACTURING AND
RETAILING CONCERNS, WHICH, INCLUDING STEINHOFF, ARE COLLECTIVELY REFERRED TO AS
"THE INDUSTRY PARTICIPANTS". ALTHOUGH THE INDUSTRY PARTICIPANTS ARE IN CERTAIN
INSTANCES IN DIRECT COMPETITION WITH ONE ANOTHER, PQ AFRICA WILL, THROUGH ITS
TECHNOLOGY AND APPROPRIATE E-COMMERCE SOLUTIONS, ENSURE THE PROTECTION OF ALL
PARTIES' CONFIDENTIAL INFORMATION AND TRADE SECRETS.
OBJECTIVES OF THE HUB
IT IS INTENDED THAT THE HUB WILL ELECTRONICALLY CONNECT THE VARIOUS
PARTICIPANTS IN THE HOUSEHOLD GOODS INDUSTRY IN SOUTH AFRICA IN A SECURE
ENVIRONMENT WHERE CONFIDENTIALITY OF INFORMATION IS OF PARAMOUNT IMPORTANCE.
THIS WILL ALLOW THE INDUSTRY PARTICIPANTS TO BE IN A POSITION TO ACHIEVE
SUBSTANTIAL COST SAVINGS THROUGH A COMMON INDUSTRY PLATFORM, THE AVOIDANCE OF
DUPLICATED COSTS AND A REDUCTION IN ADMINISTRATIVE OVERHEAD EXPENDITURE. IT
WILL ALSO BECOME A PORTAL FOR CONSUMERS WITH THE AIM OF OFFERING CUSTOMERS
VALUE ADDED SERVICES AND TO DIRECT THEM TO THE RELEVANT PRODUCT OFFERINGS OF
THE RETAILERS. IT IS ENVISAGED THAT THE HUB WILL, IN TIME, REALISE SIGNIFICANT
SUPPLY CHAIN SAVINGS FOR ALL PARTICIPANTS BY STREAMLINING PROCUREMENT AND
FULFILMENT PROCESSES THEREBY RESULTING IN SUBSTANTIALLY ENHANCED CUSTOMER
SERVICE LEVELS.
THE HUB WILL BE MANAGED AS A SEPARATE BUSINESS ENTITY IN ORDER TO MAXIMISE ITS
OWN PROFITABILITY.
FINANCIAL IMPLICATIONS
THE IMMEDIATE FINANCIAL EFFECTS ON THE PARTICIPANTS WILL BE IMMATERIAL.
HOWEVER, SUBSTANTIAL FINANCIAL BENEFITS ARE EXPECTED TO BE DERIVED IN THE
MEDIUM AND LONG TERM FROM COST SAVINGS RELATED TO, INTER ALIA, LOWER STOCK
LEVELS, REDUCED ORDERING COSTS, ONLINE ACCESS TO PRODUCT CATALOGUES AND PRICE
LISTS, IMMEDIATE ORDER PLACEMENTS, AND REDUCED HANDLING COSTS. ACCESS TO A
WIDER PRODUCT RANGE OFFERING HIGHER LEVELS OF TRANSACTIONAL INTEGRITY THROUGH
THE HUB'S FULLY SECURE INFORMATION TECHNOLOGY INFRASTRUCTURE IS EXPECTED TO
ENHANCE TRANSACTION VOLUMES.
ILLOVO WYNBERG, SANDTON
5 JULY 2000 5 JULY 2000
INVESTMENT BANK
GENSEC
A MEMBER OF THE SANLAM GROUP
GENSEC BANK LIMITED
(REGISTRATION NUMBER 1996/004744/06)
SPONSORING BROKER TO STEINHOFF
BOE SECURITIES(PTY) LIMITED
(REGISTRATION NUMBER 1996/015589/07)
MEMBER OF THE JOHANNESBURG STOCK EXCHANGE
SPONSORING BROKER TO UNITRANS
MERRILL LYNCH
SMITH BORKUM HARE
MERRILL LYNCH SOUTH AFRICA (PTY) LIMITED
MEMBER OF THE JOHANNESBURG STOCK EXCHANGE
REGISTRATION NUMBER 1995/001805/07
