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GMB
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GMB - Glenrand M I B sells Benefit Services business to Canyon Springs
GLENRAND M I B LIMITED
(a Licensed Financial Services Provider)
(Incorporated in the Republic of South Africa)
(Registration number 1997/008001/06)
Share code: GMB ISIN: ZAE000078010
("Glenrand M I B" or "the Company")
Date: 28 June 2007
Glenrand MIB sells Benefit Services business to Canyon Springs
Glenrand MIB today announced the sale of its Benefit Services business to
Canyon Springs. The disposal is subject to the approvals of various
regulatory bodies. The effective date of the disposal is one business day
after the final approval has been received.
After a detailed assessment and consideration of various strategic options,
it was agreed that the most beneficial way forward to achieve critical
mass, was the sale of the business to Canyon Springs.
The disposal will result in the following benefits:
Enable the Glenrand MIB executive to focus their efforts on their main
profit contributor, being Risk Services.
Increase the profitability of Glenrand MIB
Provide a platform for the Benefits Services business to achieve the
required critical mass and return to profitability.
Preserve the employment of Benefits Services staff.
Ensure the continuity of services currently delivered to Benefits Services
clients
The effect of the disposal enhances HEPS by 206% from 1.6 cents to 4.9
cents on 31 December 2006.
Dr Dudu Kunene, Chairman and Acting CEO stated "The disposal of our Benefit
Services division is an important step forward for the group. We will now
be able to focus all our efforts on Risk Services which is a profitable
business with much scope for growth both organically and by acquisition.
Mr Mohan Patel, Chairman of the consortium stated "This acquisition puts
the consortium in a position to demonstrate, through its service delivery
strategy, that members can receive the attention, best offering, efficiency
and service that will ensure an optimal and hassle free delivery. We
believe we have what clients have been wanting for a long time.
ENDS
Notes to Editors
About Glenrand M I B
Glenrand M I B Limited (www.glenrandmib.co.za) is a leading provider of
insurance broking and benefit consulting services to a range of South
African and international clients. Its core business is focused on an
extensive risk advisory capability for corporates, commercial ventures and
individuals through innovative combinations of conventional short-term
cover and tailored solutions. The benefit services division which is being
sold specialises in employee benefits, health risk management and
investment consulting. With its head office in Randburg and 13 branches in
South Africa, Glenrand also has offices in Namibia, Zimbabwe, Swaziland,
Mozambique and Botswana.
About Canyon Springs
Canyon Springs is a majority shareholder in a consortium comprising of
Labour, management and staff who together with experienced practitioners in
the financial services sector bring an indepth understanding of the
industry dynamics.
The business will adopt a client (member) centric approach which will
attract critical mass. It has an expert understanding of the administration
environment and systems that are required to support its business strategy.
CONTACTS
Glenrand MIB - Gordon Whitcher - Financial Director - (011) 329 1312
Canyon Springs - Mohan Patel - Chairman - (021) 637 9027
Darawees Gasant - (021) 637 9027
Date: 28/06/2007 14:49:17 Produced by the JSE SENS Department.
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