Reunert says it has accepted the Bytes Technology Group offer for its 32% stake in CS Holdings, resulting in a total loss of R31.2 million should the offer become unconditional.
Reunert acquired the stake in October 2003 at a cost of R42.9 million. Bytes has offered to buy the entire issued share capital of CSH by issuing Bytes shares in the ratio of one Bytes share for every 37 CSH shares held, which equates to a price of 15.68c per CSH share.
Reunert CEO Gerrit Pretorius says the offer is worth about R11.7 million for Reunert.
Meanwhile, Reunert has reported headline earnings of 277.5c per share for the year to 30 September, up 51% from 183.5c of the previous year.
Revenue for the period was up just 2% at R6.25 billion from R6.1 billion previously, while earnings before interest, tax, depreciation and amortisation climbed by 14% from R712.3 million to R811.9 million.
The group says revenue was affected by a stronger rand.
Pre-tax profit of R771.6 million compares with a profit of R652.9 million for the previous year, while attributable earnings rose by 62% from R295.4 million to R4478.4 million.
Pretorius says the earnings improvement is the result of good performances by the group`s managed operations as well as a return to profitability at Siemens Telecommunications. Reunert has a 40% stake in the company.
Reunert has announced a final dividend of 120c a share (2003: 88c), resulting in a total dividend of 160c a share for the year.
"Over the last five years, headline earnings per share have grown at a compound rate of 19% a year and we have returned some R2 billion to our shareholders," Pretorius says. Reunert`s return on equity improved from 31% to 51% in the past year.
Reunert has also announced the sale of 25.1% of its cable interests to black-owned Powerhouse Utilities in an empowerment deal valued at R130 million.
The group says the deal was made possible after it acquired Pirelli`s 50% stake in African Cables Holdings in September.
The Reunert share was trading at 3 400c on the JSE this morning, up 101c or 3.06% from yesterday`s close.
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