MKL
MKL
MKL - Makalani Holdings Limited - Strategy Update
Makalani Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/000726/06)
Ordinary share code: MKL
ISIN: ZAE000066700
("Makalani")
STRATEGY UPDATE
Unitholders are advised that, following a detailed internal strategic evaluation
of Makalani, the directors of Makalani ("the Board") has concluded that the
current listed structure is not optimal for Makalani. This decision has been
reached based on the consistently low liquidity of the Makalani units, as well
as the discount to underlying net asset value at which the Makalani units have
been trading, despite a strong investment performance.
Accordingly, the Board has resolved that Makalani will not make any new
investments. Capital will be returned to unitholders as underlying investments
are realized or as they mature. Assets will be realised in an orderly manner.
This process is expected to take at least three years. Makalani`s existing
facilities and commitments will not be affected by this decision.
The Board therefore intends to renegotiate the existing management contract
between Makalani and Makalani Management Company (Pty) Limited ("Manco"), and
will propose amendments in due course that align fees payable to Manco with
Makalani`s revised strategy.
Unitholders holding 78.1% of the issued units in Makalani were approached on a
confidential basis and have all given their in principle support for the
strategy outlined above.
The Board has been informed by Manco, that it intends to raise a new unlisted
fund which will continue funding Black Economic Empowerment transactions.
Unitholders will be advised in due course as to progress on implementing this
strategy.
Sandton
2 December 2008
Sponsor
RAND MERCHANT BANK, A division of FirstRand Bank Limited
Date: 02/12/2008 11:00:02 Produced by the JSE SENS Department.
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