AECI LIMITED (Incorporated in the Republic of South Africa) (Registration number 1924/002590/06) Share code AFE ISIN No. ZAE000000220 ("AECI" or "the Company") NOTICE OF PROPERTY PRESENTATION AND M&A UPDATE A presentation providing an update on the Company's strategy, business model and valuation for its property portfolio is being given to institutional shareholders today, Wednesday, 7 November 2012. The presentation will be available on AECI's website www.aeci.co.za at or about 11:00 today. The presentation also includes an update on the Company's M&A activity and commentary pertaining to transactions not previously announced is as follows: 1. AECI has acquired a 42% shareholding in an equity partnership with PT Black Bear Resources Indonesia ("BBRI") for a consideration of US$23 million. BBRI is erecting a nitric acid plant and an ammonium nitrate solution plant in Bontang, Indonesia. In line with its internationalisation strategy, AECI subsidiary AEL Mining Services ("AEL") entered the Indonesian market in 2009. Significant sales volumes were achieved and AEL rapidly became the second largest supplier of explosives to that market. In-country access to a secure source of ammonium nitrate will assist in sustaining AEL's growth trend in the region. The BBRI partnership is the first phase of a potential future AECI investment programme for the growing South East Asian mining services market. 2. AECI has acquired 80% of Afoodable Proprietary Limited ("Afoodable") and this business will be merged into the Food Division of Lake International Technologies ("Lake"). Afoodable's primary activity is the manufacture and bottling of liquid marinades and sauces for leading retail and manufacturing outlets. Lake represents international manufacturers and suppliers of specialty ingredients for the food industry. The Afoodable acquisition provides Lake with entry into the meat sauces industry and enhances the range of products and services available to its customers in Southern Africa. 3. Resitec Industria Quimica Limitada ("Resitec") is based in Brazil and is a manufacturer and supplier of emulsifiers for synthetic rubber production. AECI and the MeadWestvaco Corporation ("MWV") of the USA have held a 50:50 joint venture partnership interest in Resitec for the past four years. Agreement between the two parties has been reached for MWV to acquire AECI's 50% interest in the business. Growth in Brazil remains an important component of AECI's strategy. The Company has reviewed and refined the details of this strategy in terms of its preferred target markets and business model. Whilst involvement in Resitec has been invaluable for acquiring local knowledge and experience as a platform for future expansion, AECI concluded that Resitec is not ideally aligned with its core strategy. Woodmead, Sandton 7 November 2012 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) END -0- Nov/07/2012 09:00 GMT
Sun Hung Kai's Thomas Kwok Sentenced to 5 Years in Jail
AECI LTD: Notice of property presentation and M&A update
Press spacebar to pause and continue. Press esc to stop.