KAP - KAP International Holdings Limited - Withdrawal Of Cautionary Announcement
KAP
KAP
KAP - KAP International Holdings Limited - Withdrawal Of Cautionary Announcement
KAP INTERNATIONAL HOLDINGS LIMITED
Registration number: 1978/00181/06
JSE Share Code: KAP
ISIN: ZAE000059564
("KAP" or "the company")
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Further to the renewal of the cautionary announcement dated 31 October 2008,
shareholders are advised that the board of KAP has decided not to proceed with
the rights issue for the following reasons:
The company has significantly improved its working capital management due to
reductions in commodity and raw material prices.
Hosaf`s capacity expansion is expected to be completed by April 2009 and most of
the related capital expenditure has already been incurred. The additional
production volume is expected to be fully absorbed by the local market, which
will result in lower working capital requirements.
The company is working on further strategies to rationalise its operations with
a view to improving long-term returns and generating cash.
Given the aforesaid, the company will comfortably operate within its existing
borrowing facilities for the foreseeable future. Accordingly, shareholders are
advised that caution is no longer required to be exercised by shareholders when
dealing in their KAP securities.
Paarl
12 December 2008
Sponsor
PSG Capital (Proprietary) Limited
Date: 12/12/2008 15:39:19 Produced by the JSE SENS Department.
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