9 April 2003

South Africa: Kolosus Sells 50% Stake in De Aar Abattoir

Cape Town — Meat and leather producer Kolosus Holdings has sold its stake and loan in De Aar Abattoir to a fellow shareholder, after failing in its first bid to sell its stake in the business in February.

Kolosus announced yesterday it was selling its 50% stake in and R2,7m loan to the abattoir to GWK Limited for R4,5m, payable in cash.

This is the same price it had negotiated for the sale of the stake in the abattoir to Kalahari Kid in February. Early last month Kolosus said a condition precedent to the deal with Kalahari Kid had not been fulfilled, and that the parties had agreed not to proceed with the transaction.

Kolosus company secretary John Nell said yesterday the group was selling its stake in the abattoir as it was not considered to be part of the group's core business.

The agreement with Kalahari Kid fell through because one of the conditions precedent to the agreement was that the purchaser of Kolosus's stake accept the terms and conditions of the existing shareholder agreement, but the parties involved did not make progress on the agreement.

De Aar Abattoir was founded with Kolosus holding 50% and a number of co-operatives holding the rest of the shares.

GWK is a former co-operative and will now own more than 50% of the abattoir.

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