| Tue 3 Jun 2008, 7:42 | | MCU - M Cubed Holdings Limited - Release of year end results |
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MCU
MCU
MCU - M Cubed Holdings Limited - Release of year end results
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")
RELEASE OF YEAR END RESULTS
1 Shareholders are hereby advised that there are a number of unresolved
matters that are in the process of finalisation, which have resulted in
delays in the finalisation of the year end results, including inter alia,
the following:
1.1 As disclosed in prior SENS announcements and as further disclosed in the
circular to shareholders posted on the 3 May 2008, there remains an
unresolved tax assessment against m Cubed Specialised Lending Services
(Pty) Limited ("MCSL"). MCSL has filed an objection against the assessment,
which was disallowed, and has subsequently lodged a formal tax appeal
against the assessment. Furthermore MCSL was required to make an advance
payment of R132 million to SARS, pending the final outcome of the tax
appeal lodged against the assessments. MCSL are currently still in the
process of resolving the aforementioned assessment and the board of m Cubed
are still of the opinion, based on professional advice obtained, that MCSL
has a strong case against the assessment.
1.2 Shareholders are referred to the SENS announcement of 9 February 2008,
whereby details of the settlement of m Cubed`s dispute with a regulator
were provided. In terms of the settlement, an amount of R50 million may be
retained by the regulator until such time as m Cubed can demonstrate that
they have taken reasonable steps to unwind or regularise the transactions
being the subject matter of the dispute. The directors anticipate that this
will be in the third quarter of 2008.
1.3 In addition shareholders are referred to the SENS announcement of 7 May
2008, whereby it was disclosed that in the normal course of business
towards the end of 2005, a subsidiary of the Fidentia group took out a
linked investment policy with m Cubed Life Limited ("m Cubed Life"). By it
very nature, the liabilities of the linked life policy are always equal to
the assets underlying the policy. M Cubed terminated the mandate with the
asset manager that was appointed by the policyholder being Fidentia Asset
Management (Pty) Limited. M Cubed Life subsequently cancelled the policy.
The aforementioned is pending investigation by a regulator and m Cubed has
been restricted from utilising R56 million until such investigation has
been finalised.
2 The directors are of the opinion that disclosure of the year end results
prior to obtaining finality regarding the aforementioned tax assessment and
other matters, will not give shareholders a fair reflection of the net
asset value of the business that can and will be distributed to
shareholders in due course. Premature disclosure of such information prior
to obtaining finality on these matters will only be misleading to
shareholders and may not disclose a true reflection of the m Cubed results.
Shareholders are further advised that the trading in m Cubed shares on the
JSE Limited ("JSE") will remain suspended until further notice.
3 The aforesaid has resulted in delays in finalising the year end results as
the auditors and actuaries, inter alia, require more certainty in order to
sign off on the year end results and/or other required reports.
Shareholders are therefore advised that m Cubed is currently not in a
position to timeously release its year end results in terms of the JSE
Listings Requirements.
4 Shareholders, as disclosed on SENS on 26 May 2008, have approved the
transfer of the insurance business of m Cubed Life to PSG FutureWealth
Limited.
5 Shareholders will be advised and the board of m Cubed will undertake to
disclose the financial results for the year ended 28 February 2008 as soon
as the board of m Cubed have further clarity regarding the aforesaid
matters.
2 June 2008
Stellenbosch
PSG Capital (Pty) Limited - Sponsor
Date: 03/06/2008 07:42:00 Produced by the JSE SENS Department.
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