| Fri 1 Jun 2007, 12:38 | | GEN - Sage Group Limited - Final Escrow Release |
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JSE
GEN
GEN - Sage Group Limited - Final Escrow Release
Sage Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1970/010541/06)
("Sage")
SAGE GROUP LIMITED - TAX MATTERS: FINAL ESCROW RELEASE AND THIRD
SUBSEQUENT DISTRIBUTION TO SHAREHOLDERS
The former shareholders of Sage ("shareholders") are referred to
the announcements made on SENS on 25 August 2005, 27 March 2006,
30 May 2006 and 21 September 2006 regarding the tax matters as
described in the Circular to Shareholders dated 8 July 2005, and
for which escrow accounts totalling R120 million (equivalent to
approximately 33 cents per share) have been maintained.
Final escrow release and third subsequent distribution
The escrow steering committee is pleased to advise shareholders
that the last of the three tax matters, for which an amount of
R85 million was set aside (i.e. 71% of the total escrow amount),
has been finally and successfully resolved with SARS. As a
result, an amount of R96,572,442.65, being the full amount
(inclusive of accrued interest) held in escrow in respect of that
tax matter, shall be released in favour of the eligible
shareholders.
Accordingly, a final distribution of 26.72 cents per share
(comprising 23.46 cents per share of capital and 3.26 cents per
share of accrued interest, after the costs incurred in accordance
with the provisions of the escrow agreement) ("third subsequent
distribution") will be made to shareholders who were recorded in
the register on 9 September 2005 ("consideration record date") as
being eligible to receive the initial payment of 142 cents per
share (paid on 12 September 2005) and possible subsequent
distributions.
On 8 June 2007, the third subsequent distribution is expected to
be:
* transferred electronically or posted to certificated
shareholders, who were registered as such on the
consideration record date and who have surrendered their
documents of title, failing which payment will take place
within five business days of receipt of their documents of
title, and
* credited and updated to the accounts, held at Central
Securities Depository Participants or brokers, of
shareholders who held dematerialized shares, and who were
recorded in the register as such on the consideration record
date.
Conclusion
In addition to the initial payment of 142 cents per share paid on
12 September 2005, the three subsequent escrow distributions to
shareholders in aggregate amount to 35.85 cents per share,
comprising 32.09 cents per share of capital and 3.76 cents per
share of accrued interest, after costs, making a total of 177.85
cents per share paid to shareholders in respect of the sale of
Sage to Momentum Group Limited (compared to the total capital
consideration of 175 cents per share).
As all the escrow matters have been resolved, the escrow steering
committee will be disbanded after the final payments have been
made and there will be no further reporting to shareholders.
Johannesburg
1 June 2007
Sponsor: J.P.Morgan Equities Limited
Date: 01/06/2007 12:38:01 Produced by the JSE SENS Department.
