Offer Contemplates A Distribution of R3.10 Per Share Valuing The Company's Stake at Approximately $36 Million
Company Press Release
June 21, 2000
BOCA RATON, FL -- Leisureplanet Holdings, Ltd. (Nasdaq:LPHL; or the Company) today announced that its South African
subsidiary, First Lifestyle Holdings (``Lifestyle''), have received an offer from Ethos Private Equity, Ltd., a
leading South African private equity fund, Nozala Investments and members of the executive management of Lifestyle
to acquire all of the business operations of Lifestyle.
The offer is subject to due diligence, definitive agreements, completion of funding and other regulatory and board
approvals.
If the transaction is consummated at the offer price, all shareholders of Lifestyle will receive R3.10 in cash
per share. At current exchange rates, this would result in LPHL receiving approximately $36 million for its shares.
As part of the transaction, the purchasers will assume all Lifestyle's outstanding operating debt of approximately
$3.7 million.
``We are pleased to announce receipt of a formal offer for the assets of Lifestyle,'' said Clive Kabatznik, Chief
Executive Officer of Leisureplanet Holdings, Ltd. ``The party leading the bid is one of South Africa's leading
private equity funds and therefore we believe the offer is credible and viable. We anticipate a speedy resolution
of the outstanding legal and due diligence issues and will work to formalize the agreements as soon as possible.
A successful conclusion of this transaction will complete our transformation into a company that will focus on
acquiring controlling stakes in leading international Internet and technology related companies.''
Upon completion of the transaction, the Company anticipates utilizing the proceeds for the repayment of debt and
other general corporate purposes. The statements which are not historical facts contained in this press release
are forward-looking statements that involve certain risks and uncertainties including but not limited to risks
associated with the uncertainty of future financial results, additional financing requirements, negotiations resulting
in a definitive agreement, development of new products, regulatory approval processes, the impact of competitive
products or pricing, unpredictability of patent protection, technological changes, the effect of economic conditions
and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
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Contact:
Leisureplanet Holdings, Boca Raton
Rebecca Freeman, 561/479-0040