February 2008

Spirit Capital Investments

In our last update, Spirit Capital was in the final stages of concluding two private equity transactions. It is our pleasure to announce the successful conclusion of the aforementioned transactions.

Acquisition of a majority interest in Lucite International South Africa (Pty) Ltd

The first transaction is the acquisition of a majority interest in Lucite International South Africa (Pty) Ltd. Lucite International South Africa is the sole manufacturer of cast acrylic sheet in South Africa, and also imports and distributes methyl methacrylate, used in the coatings industry. We are currently in the process of renaming the business "Perspex South Africa".

Darryl Horney, director of Spirit Capital, said "Our decision to purchase a majority interest was based on Lucite's strong market share, growth profile and Perspex's exceptional brand name."

The acquisition of the majority interest took effect from the 7 January 2007.


Acquisition of 37% of the ordinary shares in Innfile Holdings (Pty) Ltd

The second private equity transaction is the acquisition of 37% of the ordinary shares in Innfile Holdings (Pty) Ltd. Innfile Holdings required equity capital for the acquisition of its stake in On Demand, and identified Spirit Capital as its preferred equity partner.

Innfile Holdings owns 70% of Tidy Files S.A (Pty) Ltd as well as a 70% interest in the business of On Demand SA (Pty) Ltd. Tidy Files manufactures and distributes filing systems, office furniture and stationery consumables to the corporate and wholesale markets in South Africa.


We look forward to a prosperous partnership with Perspex, Tidy Files and On Demand.

Corporate Advisory Transactions

New Seasons Invests in SEW Eurodrive

Spirit Capital, corporate advisors to New Seasons Investments Holdings Limited, are pleased to announce the acquisition of a 26% interest by New Seasons in SEW Eurodrive (Pty) Ltd.

SEW is a subsidiary of SEW-Industriebeteiligungs Gmbh, a world leader in industrial gear box and drive motor design and manufacture. SEW is headquartered in Johannesburg and has a network of countrywide branches and assembly plants from which it services the local and sub-Saharan markets.

Spirit Capital performed the valuation of SEW Eurodrive and negotiated the purchase price, transaction terms and legal agreements on behalf of New Seasons.


Acquisition of On Demand by Innfile Holdings

Innfile Holdings (Pty) Limited (the holding company of Tidy Files S.A. (Pty) Ltd), has acquired a majority interest in On Demand SA (Pty) Ltd.

On Demand is a provider of office automation and communication solutions. Their products include PABX systems, photo copiers, printers and least-cost routing systems. Innfile, through its subsidiary company Tidy Files, shall share its infrastructure and client base with On Demand to expand its geographic presence at minimal incremental fixed cost.

Spirit Capital's role in the transaction included the valuation of On Demand, drafting the information memorandum, as well as negotiating the purchase price, transaction terms and legal agreements, and sourcing the debt and equity funding.

The transaction was made effective from November 2007.


The Foul Hook

We would like to take this opportunity to thank our clients and associates who have contributed to the Foul Hook, as it has proved to be a massive success. We encourage participation in the ongoing incentive program and look forward to keeping you posted on upcoming Foul Hook events.


Best Regards,
Team Spirit

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