November 2009

Spirit Capital Investments

Perspex SA acquires majority interest in Xline Aluminium Solutions

Spirit Capital’s associate, Perspex South Africa, the only manufacturer and supplier of Perspex cast acrylic sheet in Africa, has acquired a majority interest in Xline Aluminium Solutions. Xline stocks, trades and distributes aluminium profiles and related accessories and provides solutions to the design and development of aluminium systems.

Perspex has identified specialist routes to market for its products that overlap with those of Xline. Xline and Perspex intend to identify and explore new customers and product opportunities for one another.

Spirit Capital increases its effective interest in Tidy Files

As from July 2009, Spirit Capital has acquired a majority interest in Innfile Holdings, resulting in a controlling interest in Tidy Files and the disposal of its minority interest in On Demand. Tidy Files manufactures and distributes filing systems, office furniture and stationery consumables to corporate and wholesale markets in Southern Africa.

Spirit Capital’s preference is to acquire controlling interests in its equity investment portfolio and the opportunity to increase its shareholding from a minority to majority interest in Tidy Files whilst partnering with management proved to be an attractive one.

Corporate Advisory Transactions

Kraft dispose of Beechies operations

Spirit Capital, corporate advisors to Kraft Foods South Africa, is pleased to announce the disposal of the Beechies operations to Natela Importers.

Beechies is a leading chewing gum brand with an iconic, household name and strong heritage in South Africa and neighbouring markets. Natela Importers distributes local and international food brands to the South African market, and considers Beechies a complementary product to its existing portfolio.

Spirit Capital raises R50m equity capital for Queensgate

Queensgate Hotels and Leisure has entered into a R50 million standby equity facility with US based investment fund YA Global Master.

Queensgate is a JSE-listed hotel and leisure group providing business development and management services to the hospitality and leisure sector in South Africa. The company has an attractive portfolio of projects, comprising a range of synergistic businesses and brands that exhibit promising growth prospects.

Spirit Capital acted as Queensgate’s exclusive advisor in the equity raising process.

On a more sombre note, we took a mutual decision with Duncan MacRobert to close our Cape Town office in October. Our thanks to Duncan and Claire for their contribution to Spirit Capital over the last 18 months and we wish them all the best for the future.

Whilst 2009 has been a challenging year for most businesses, we are pleased with the investments we have made and the transactions we have concluded on behalf of our clients. We look forward to doing more of the same in 2010.

Best wishes for the remainder of the year and may next year bring you all success and happiness.

Best Regards,
Team Spirit

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