All agreements governing the BEE transaction between JSE-listed Prism Holdings, the Mineworkers Investment Company (MIC) and Rand Merchant Bank, the financier to MIC, have been concluded.
Now all that remains for MIC to acquire approximately 17% of the Trusted Transactions company, is shareholder approval (to be voted on at a shareholder meeting scheduled for 24 March 2005).
According to the circular, which is being posted to shareholders today (2 March 2005), every shareholder is being offered 40c per share in a ratio of 16,89% shares for every 100 shares held. Shareholders may however, tender shares in addition to their pro rata entitlement. This entire transaction is expected to be concluded on 18 April 2005.
The deal is not expected to have any material impact on Prism`s earnings per share (EPS) or headline earnings per share (HEPS) in the current financial year.
Prism Financial Director, Jan Hnizdo, states there is widespread shareholder support for the transaction. "The increase in our original offer to shareholders from 36c to 40c per share was welcomed by shareholders who also recognise the benefits of the deal for Prism. We currently have irrevocable undertakings amounting to an effective 47%, to vote in favour of the transaction.
"Not only is it in keeping with the spirit of the proposed ICT Charter and our commitment to broad-based transformation, Prism gains a credible, broad-based BEE partner at Holdings level. We are confident that this BEE transaction will result in long-term benefits accruing to the widest possible community of black South Africans given the MIC`s track record in economic development and social upliftment," he concludes.
Share
MIC is one of the country`s leading proponents of "broad based black economic empowerment", an approach to economic empowerment which sets out to improve the lives of a large number of previously disadvantaged individuals and their families.
Founded by the National Union of Mineworkers in 1995, MIC has been an empowerment pioneer in many respects by being a driver and party to some of the country`s landmark black empowerment transactions such as:
* The initial acquisition of Vodacom
* The listing of HCI and the winning of eTV "free to air" television broadcasting licence
* The winning of two gaming licences with Global Resorts SA being Graceland in Secunda and Caesars Gauteng and the facilitation of over Rl, 5 billion in direct fixed investment
* Securing joint control over Primedia Ltd with recognisable assets such as Radio 702, Cape Talk and 94.7 Highveld as well as Ster-Kinekor
* Concluding the landmark transaction with, multi-national BP to secure 25% equity of BPSA for MIC and the WDB Investment Holdings initiative
* Acquiring 25% of Tracker Vehicle Recovery Network
Prism Holdings
JSE-listed Prism Holdings Limited is a leader in the field of secure electronic transaction technologies and services. The Group has a strong presence in South Africa and an established and expanding footprint across Africa and South-East Asia. Prism`s head office is located in Johannesburg, South Africa and has a regional office in Kuala Lumpur, Malaysia.
Prism has a proven track record in the delivery of trusted transaction technologies and end-to-end solutions for the retail, utilities, banking, cellular and petroleum industries. The Group has developed and implemented innovative transaction and payment-centric Intellectual Property that bridges the following technologies:
* Chip cards including SIM cards, financial smart cards and prepaid telephone cards
* Point-of-Sale frameworks, applications and devices
* OEM transaction modules including PINpads, card readers and outside payment terminals
* Transaction security modules and servers and trusted centre solutions
* In-store and forecourt payment servers, wireless application messaging gateways and value-added-services gateways
* End-to-end secure electronic payment architectures for wired and wireless networks
Editorial contacts