AltX-listed Simeka BSG says it has negotiated the acquisition of the remaining minority shareholding in takeover target Premium Ideas, which means it is now buying 100% of the company for R144 million.
Simeka BSG announced in August it was buying 91.24% of Premium Ideas for up to R135.16 million.
However, it says in a notice to the JSE that it will now also acquire the balance of the company.
Premium Ideas provides fulfilment and packaging solutions for high-security, high-value smart card applications of all cards, cellphones, DVDs, CDs and related products, as well as scratch vouchers.
<B>Fast figures:</B>
Pro-forma effects on Simeka BSG's results for the year to May 2007
Assumes the acquisition had already been in effect:
EPS: Before: 11.9c; After: 13.3c
HEPS: Before: 12c; After: 13.4c
NTAV: Before: 4.2c; After: -18.3c
Simeka BSG has previously said it wants the company to add depth to its assembly and manufacturing cluster, which it is to rename Secure Print and Payment Solutions.
It says there are synergies between Premium Ideas and its own businesses, especially Motoma Mithratech, and to an extent Spec Systems, with the acquisition allowing Simeka BSG to secure a larger portion of the value chain.
It expects the deal to have a positive effect on profitability in the May 2008 annual results and beyond.
In August, Simeka BSG and privately-held Sahara Holdings announced they had called off a proposed merger, just days after disclosing that Simeka BSG was acquiring Sahara for R867 million, to be paid through the issue of Simeka BSG shares.
Neither party has given reasons for the cancellation of that deal.
The Simeka BSG share was trading at R1.25 on the JSE this morning, down 4c or 3.1% from Friday's close. This was after 13 trades in which 194 180 shares changed hands.
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