JSE-listed DNA Supply Chain Investments has acquired Streamworks for a maximum R43.68 million.
Streamworks is a wholly owned operating subsidiary of JSE-listed Streamworks Group, which will apply for a transfer to the JSE`s cash companies sector after an unbundling to be exercised in terms of the acquisition.
The purchase price has been calculated on a formula in terms of which R6.24 will be paid for every R1 of consolidated net profit after tax earned by Streamworks during the 12 months to 31 March 2002.
The minimum price to be paid will be R18.72 million, with the cap set at R43.68 million.
The deal will be settled by the issue of DNA shares at 60c per share, which will be unbundled to Streamworks shareholders.
DNA has also made an alternative offer to Streamworks shareholders to buy their Streamworks shares at 32c a share.
In terms of the unbundling, the shares issued for the minimum payment will be unbundled once the conditions precedent have been met. The balance will be unbundled once Streamworks` after-tax profit has been determined.
Streamworks Group majority shareholders have made available three million DNA shares, out of their entitlement from the first unbundling, to Streamworks minorities who do not accept the cash offer. These will be distributed with the first unbundling, in a ratio of 8.2 DNA shares for every 100 Streamworks shares held.
Streamworks Group will, after the first unbundling, apply to the JSE to transfer its listing to the cash companies sector.
The deal is subject to certain conditions, including a due diligence investigation on Streamworks as well as regulatory and shareholder approval.
DNA says Streamworks` involvement in factory automation and shop floor systems addressing the interface between enterprise resource planning systems and automation environments will strengthen its ability to offer solutions in the manufacturing component of the supply chain.
DNA reported turnover of R242.01 million and attributable income of R36.38 million for the year to June 2000. Streamworks Group achieved turnover of R19.56 million for the six months to September 2000. Attributable income was reported at R2.8 million.
The Streamworks share was untraded at 25c on the JSE this morning. The DNA share was untraded at 70c.
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