CNL - Control Instruments - Announcement regarding Dealstream Securities
CNL
CNL
CNL - Control Instruments - Announcement regarding Dealstream Securities
CONTROL INSTRUMENTS GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1964/003987/06)
Share Code: CNL
ISIN: ZAE000001665
("Control Instruments" or "the Company" or "the Group")
ANNOUNCEMENT REGARDING DEALSTREAM SECURITIES
Shareholders may be aware that Dealstream Securities` ("Dealstream") has ceased
trading. Control Instruments and certain of its directors used Dealstream to
acquire Control Instruments securities.
Dealstream`s positions in Control Instruments securities have been assumed by
one of Dealstream`s counterparties. Control Instruments has contacted the
counterparty with the aim of facilitating the orderly take up of these Control
Instruments securities.
Control Instruments used Dealstream to acquire approximately 23.0 million shares
in the open market and its total expenditure in respect of these shares is
approximately R10.4 million. Dealstream held approximately R3.4 million of
Control Instruments` cash, the recoverability of which the Company believes has
been materially prejudiced.
Directors of Control Instruments also hold accounts with Dealstream. Neither the
Group`s nor the directors` accounts were in default of their margin requirements
at the time Dealstream ceased trading. On the contrary, the directors` accounts
had substantial cash balances as the directors had introduced their own equity
to ensure that more than sufficient cover existed at all times.
Based on the information available it appears that Dealstream and/or its
management and staff misappropriated the funds in the Group`s and the directors`
margin and trust accounts. Control Instruments and its directors are currently
taking legal advice in respect of claims that they may have against Dealstream
and its staff.
None of the above should have any impact on the day to day operations of the
Group`s subsidiaries.
Further announcements will be made as and when the Group has more information.
Cape Town
25 September 2008
Sponsor
Investec Bank Limited
Date: 25/09/2008 17:33:01 Produced by the JSE SENS Department.
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