Astrapak has concluded an agreement with Boxmore Plastics SA (Pty) Limited (“Boxmore”) in terms of which Astrapak will dispose of and Boxmore will acquire the operating entities of Hilfort Plastics Bloemfontein and Hilfort Plastics Upington (jointly “Hilfort”) as one indivisible transaction (“the Transaction”).
2. THE NATURE OF THE BUSINESS OF HILFORT
Hilfort operates in both the Bloemfontein and Upington markets and manufactures and sells PET plastic bottles to segments within the beverage industry.
3. RATIONALE OF TRANSACTION
The decision to dispose of Hilfort fits in with Astrapak’s strategic objective to focus on operations of scale.
4. TERMS OF DISPOSAL
Boxmore will acquire Hilfort with effect from 3 December 2014 (“the effective date”).
5. THE CONSIDERATION
The purchase consideration of approximately R41,000,000 payable to Astrapak, shall be discharged by Boxmore paying the purchase consideration in cash into the nominated bank account by close of business on the 5th of December 2014. The proceeds will be applied to reduce Astrapak’s net borrowing position.
6. FINANCIAL EFFECTS OF THE DISPOSAL
The net assets value of the business of Hilfort at the effective date will be approximately R28,099,988 and the annual net profits after tax attributable to the net assets that are the subject of the Transaction is R5,301,360.
7. CONDITIONS PRECEDENT
All conditions precedent has been met and the Transaction will therefore be implemented from the effective date.
8. JSE CATEGORISATION
The Transaction is a category 2 transaction in terms of the JSE Listing Requirements.
3 December 2014
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)