KAP: KAP INDUSTRIAL HOLDINGS LIMITED - Acquisition By KAP Of Safripol Holdings Proprietary Limited |
KAP: KAP INDUSTRIAL HOLDINGS LIMITED - Acquisition By KAP Of Safripol Holdings Proprietary Limited Acquisition By KAP Of Safripol Holdings Proprietary Limited KAP INDUSTRIAL HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration Number 1978/000181/06) Share code: KAP ISIN: ZAE000171963 ('KAP') ACQUISITION BY KAP OF SAFRIPOL HOLDINGS PROPRIETARY LIMITED 1. Introduction Shareholders are referred to the SENS announcement published on 10 August 2016, in terms of which a nominated wholly-owned subsidiary of KAP would acquire the entire issued ordinary share capital of Safripol Holdings Proprietary Limited ('Safripol'), subject to certain conditions precedent (the 'Transaction'). Shareholders are hereby advised that all of the conditions precedent in relation to the Transaction have been fulfilled and accordingly the effective date for the Transaction is 1 January 2017. 2. Rationale for the Transaction KAP is invested in a number of industry leading industrial businesses managed within two segments: Diversified Logistics and Diversified Industrial. The Diversified Industrial segment includes chemical operations comprising of its Hosaf and Woodchem businesses. It is one of KAP´s strategic objectives to grow by investing in industry leading industrial assets that are complementary to its existing operations. The Safripol business operates in the chemical sector and produces complementary products to those of Hosaf, with a similar business model. The Transaction represents an ideal fit for KAP in terms of certain key investment criteria, being Safripol´s market leadership, high barriers to entry, strong cash generative qualities and competence of management with sufficient depth and continuity. 3. Funding of the Transaction The entire issued ordinary share capital in Safripol was acquired for a cash consideration of R4.1 billion on a debt free, cash free basis, which was discharged on 3 January 2017. In order to maintain a healthy capital structure to facilitate future growth for KAP, the Transaction was funded by a combination of equity and debt in the following manner: - R1.5 billion equity raised through a Claw-back Offer, concluded in December 2016; - R1.374 billion raised through a combination of private and public bond issuances with 3 and 5 year tenors, together with a mix of fixed and floating interest rates; and - R1.226 billion raised through a combination of term debt and revolving credit facilities with 3 year tenors, together with a mix of fixed and floating interest rates. 4. Appreciation The board of directors record their appreciation to shareholders and institutions for their continued support and participation in the aforesaid funding. 10 January 2017 Stellenbosch Sponsor to KAP PSG Capital Proprietary Limited Date: 10/01/2017 02:00:00 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. |
2017-01-10 14:00:00 Source: JSE News Service (SENS) |
KAP Industrial Holdings Ltd. published this content on 10 January 2017 and is solely responsible for the information contained herein.
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