| Tue 18 Nov 2008, 14:04 | | MCU - m Cubed Holdings Limited - Update and release of year end results |
|
MCU
MCU
MCU - m Cubed Holdings Limited - Update and 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")
UPDATE AND RELEASE OF YEAR END RESULTS
Further to the last announcement on SENS, dated 3 June 2008, the board of m
Cubed wishes to advise shareholders that the company, as further set out
below, has made progress in addressing the outstanding matters that remain in
m Cubed:
1.1 As disclosed in prior SENS announcements and as further disclosed in the
circular to shareholders posted on 3 May 2008, there remains unresolved
tax assessments against m Cubed Specialised Lending Services (Pty)
Limited ("MCSL"). m Cubed board has made progress in finalising this
matter with the South African Revenue Services ("SARS"). Final resolution
is expected to be achieved shortly on the original matters raised by
SARS.
1.2 Shareholders are referred to the SENS announcement on 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 R 50 million is
retained by a 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 are hopeful that
this matter will mostly be resolved by the end 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"). 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 matter is
still pending investigation by a regulator and m Cubed has been
restricted from utilising R56 million until such investigation has been
finalised. The directors are hopeful that this matter will be resolved
by the end of 2008.
1.4 On 8 July 2008 the High Court approved the transfer of business from m
Cubed Life to PSG FutureWealth Limited, which meant that most of m Cubed
Life`s policyholder assets and liabilities have subsequent to the
financial year end been removed from its balance sheet.
1.5 m Cubed Life reached agreement with the Curators of the Ovation group of
companies that those policyholder assets and liabilities of m Cubed Life
that were still administered by Ovation would be transferred to PSG
FutureWealth with effect from 15 August 2008. This was implemented
successfully.
Notwithstanding the above progress made, the directors are still of the
opinion that disclosure of the year end results prior to obtaining finality
regarding the aforementioned tax assessments and other matters, will not give
shareholders a fair reflection of the net asset value of the business.
The aforesaid has, inter alia, resulted in delays in finalising the year end
results as the auditors and actuaries require more certainty in order to sign
off on the year end results and/or other reports.
The directors reasonably anticipate that the annual financial results will be
finalised by the end of January 2009.
Shareholders are further advised that the trading in m Cubed shares on the JSE
Limited ("JSE") will remain suspended until further notice.
18 November 2008
Stellenbosch
PSG Capital (Pty) Limited - Sponsor
Date: 18/11/2008 14:04:41 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
