| Fri 15 Feb 2008, 10:05 | | PPE - Purple Capital Limited - Cautionary announcement |
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PPE
PPE
PPE - Purple Capital Limited - Cautionary announcement
Purple Capital Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE & ISIN: ZAE000071411
("Purple Capital" or "the company")
Cautionary announcement
Global Trader Europe
Global Trader Europe Limited ("GTE") is held independently as the owner of the
international operations of the Global Trader group. A regulatory capital
deficit has arisen in GTE as a result of a client margin call default. Under
these circumstances GTE applied, at the close of business on Wednesday, 13
February 2008, to the Financial Services Authority ("FSA") in the United Kingdom
for a Variation of Permission - the official method by which companies change
the terms of their authorisation, limiting principal activities to closing
existing trades.
Purple Capital, together with the Board and management of GTE, continues to
evaluate alternatives for the re-capitalisation of GTE, including the possible
introduction of an international equity partner. However, to ensure that the
various alternatives can be evaluated within an orderly operational structure
and regulated financial exposure, GTE will today apply, with the permission of
the FSA, to be managed under Administration.
Global Trader`s South African operations ("GTSA") - also independently held, are
unaffected legally or economically by the circumstances of GTE.
GTSA is performing very well and has traded profitably throughout the recent
period of adverse market movements and volatility. In fact, GTSA`s client base
has grown at an annual rate of 34% since the effective date of the acquisition,
whilst turnover has grown by 117% year-on-year for the same period.
GTSA generates in excess of 80% of group profitability and cash flows and
remains well positioned as the leading CFD and Spread Trading derivatives
operation in South Africa. Our expansion plans into a full-service brokerage
remain on track for 2008.
Shareholders are advised to exercise caution when dealing in the company`s
shares until final details of GTE`s restructuring are certain, at which time a
detailed announcement will be made.
Johannesburg
15 February 2008
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 15/02/2008 10:05:09 Produced by the JSE SENS Department.
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