[2008-05-05]  MAURITIUS STATIONERY MANUFACTURERS LIMITED
Mauritius Stationery Manufacturers Limited (“MSM”) intends to acquire 88.01% of the shares of Book Printing Services Ltd (“BPS”) in exchange of MSM shares (“the transaction”).

The consideration is for an amount of MUR 100.7 million and will be in the form of new shares of MSM that will be exchanged in the ratio of 100 new MSM shares for every 784 shares of BPS.

The transaction is a substantial transaction and a related party transaction under Chapter 13 of the Listing Rules. It also involves a consideration issue as defined in Rule 5.23 of the Listing Rules.

(a) Reasons for the Acquisition

The Directors of MSM are of opinion that the above proposed transaction will not only create synergies and enable economies of scale which will benefit to all their stakeholders but also strengthen the operations on the very competitive market of printing in Mauritius and in the region.

(b) Basis for Determination of Price Consideration

The fair values of MSM and BPS have been determined using the discounted cash flow method and a share exchange ratio of 100 MSM shares for every 784 BPS shares has been obtained based the respective fair values.

(c) Completion of the transaction

The document pertaining to the substantial and related party transaction, and consideration issue was subject to review by the Stock Exchange of Mauritius. The transaction also required the notification of the Financial Services Commission and the shareholders of MSM and the issue of a Listing Particulars (which also includes the Circular required for a substantial transaction) and the publication of a summary of the Circular.

Copies of the Listing Particulars will be posted to all shareholders registered at the close of business on April 24, 2008. Copies of the Listing Particulars are available free of charge at the registered office of the company at 11th Floor Swan Group Centre, 10 Intendance Street, Port Louis up to May 23, 2008.

Source: SEM