MCU - m Cubed Holdings Limited - Circular and Rene
MCU
MCU
MCU - m Cubed Holdings Limited - Circular and Renewal of Cautionary Announcement
m Cubed Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/014568/06)
Share code: MCU & ISIN: ZAE000033353
("m Cubed" or "the company")
CIRCULAR TO m CUBED SHAREHOLDERS REGARDING REINSURANCE TRANSACTION BETWEEN m
CUBED LIFE LIMITED AND ALTERNATIVE CHANNEL LIMITED AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
CIRCULAR TO m CUBED SHAREHOLDERS
Shareholders are referred to the company`s announcement on 22 March 2007
regarding the reinsurance agreement between m Cubed Life Limited ("mCL") and
Alternative Channel Limited ("Alternative Channel"), whereby Alternative Channel
has reinsured the policyholders` book of mCL.
The circular to m Cubed shareholders containing details of the reinsurance
transaction and a notice of a general meeting at which the m Cubed shareholders
shall be asked to consider and approve the reinsurance transaction, is in the
process of being finalised. The settlement price in terms of the reinsurance
agreement is dependent on the outcome of the actuarial valuation of mCL as at 28
February 2007, to be undertaken by the statutory actuary of mCL. Finalisation of
the circular is thus dependent on the valuation results which mCL anticipates
receiving on or about the 31 May 2007.
Shareholders will be duly advised of the timing of the circular on approval of
the circular by the JSE Limited.
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are further referred to the cautionary
announcement of 14 December 2006, and the renewal of the cautionary announcement
on 22 March 2007, in which shareholders were advised that the South African
Revenue Services ("SARS") had issued additional tax assessments against m Cubed
Life Ltd and m Cubed Specialised Lending, emanating from an intellectual
property sale and leaseback transaction in 1999. Objections have been lodged
against these assessments and the tax specialist appointed to represent and
advise m Cubed on this matter is of the opinion that the company has a strong
case against SARS. However the assessments, if successful, will have a material
negative impact on the value of m Cubed`s shares. The company`s shareholders are
accordingly advised to continue to exercise caution when dealing in their
securities until a further announcement is made.
Shareholders are referred to the stakeholder update published on SENS on
Tuesday, 7 May 2007.
Stellenbosch
7 May 2007
PSG Capital (Pty) Ltd - Sponsor and corporate adviser
Date: 07/05/2007 16:00:02 Produced by the JSE SENS Department.
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