Published: Tuesday, 20 November 2007 17:23
Zaptronix Limited announced today (Tuesday, 20 November 2007) that it has concluded a broad–based black economic empowerment (BBBEE) transaction with Royal Bafokeng Capital (Pty) Limited, in terms of which RBC will own 30% of Zaptronix.
727/07-jmd
JSE AltX–listed Zaptronix Limited (Zaptronix) – specialist providers of risk management services in the energy and mobile logistics fields – announced today (Tuesday, 20 November 2007) that it has concluded a broad–based black economic empowerment (BBBEE) transaction with Royal Bafokeng Capital (Pty) Limited (RBC), in terms of which RBC will own 30% of Zaptronix.
RBC is a subsidiary of Royal Bafokeng Ventures (Pty) Ltd, an investment vehicle of Royal Bafokeng Holdings (Pty) Ltd (RBH). RBH is responsible for the management and development of the commercial assets of The Royal Bafokeng Nation (RBN). The transaction will classify Zaptronix as a broad based black economic empowered company as the beneficiaries of the RBN consist of 300 000 historically disadvantaged individuals.
Zaptronix CEO Jan Nel said: “We are very pleased to welcome RBC as our empowerment partner; with each member of the 300 000–strong RBN as a stakeholder, it is a genuinely broad–based entity.”
“We believe this transaction positions Zaptronix favourably to secure future corporate and government business where BBBEE supplier status is a prerequisite.”
“Further, RBC’s strengths in financial structuring and capital markets will provide Zaptronix with the necessary leverage to acquire business platforms that contribute to its business model.”
RBC Chairperson Tshepo Kgage said: “Acquisition of this stake in Zaptronix is another important step for the RBN in its drive to diversify its investment portfolio; in a single transaction we gain strategic footholds in several highly specialized growth areas within the services sector.”
The transaction with RBC is being facilitated by existing Zaptronix shareholder Strider, which is selling 113 795 700 Zaptronix ordinary shares to RBC at a price of 16 cents per share. It has no immediate dilution effect on existing Zaptronix shareholders and no new Zaptronix shares will be issued.
Zaptronix has granted RBC the option to subscribe in future for a maximum of 113 795 700 new Zaptronix shares at 16 cents per share.
The transaction is conditional upon various suspensive conditions, including the approval of Zaptronix shareholders and the necessary regulatory approvals.
In a trading statement, Zaptronix said its financial results for the year ended 31 August 2007 are expected to be released on or about 26 November 2007. The company’s earnings per share and headline earnings per share, for the year ended 31 August 2007, is expected to be between 0.15 and 0.21 cents per share. This represents a material turnaround from the 0.01 cents per share loss in the comparative period in the prior year.
The reason for the expected turnaround in earnings is primarily due to organic growth and diligent expenditure control.
Zaptronix was listed in 2005 and has successfully bedded down its first acquisition, DuO Solutions Provider. Zaptronix is now positioned to expand into the energy management market.
Note to editors:
The full Zaptronix announcement relating to the BBBEE transaction with RBC is available on the Zaptronix website, www.zaptronix.co.za, the RBH website, www.bafokengholdings.com and SENS, www.sharenet.co.za.
For more information contact:
Russell & Associates
James Duncan
+27 11 880 3924
+27 82 892 8052