| Thu 29 Jan 2009, 17:09 | | ASA/ABSP - Absa Group Limited/Absa Bank Limited - The acquisition of |
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JSE ASA ABSP
ABSP AMAGB
ASA/ABSP - Absa Group Limited/Absa Bank Limited - The acquisition of
shareholdings in four listed companies following client defaults relating to
single stock futures
ABSA GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
ISIN: ZAE000067237
JSE share code: ASA
Issuer code: AMAGB
(Absa, Absa Group or the Group)
ABSA BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/004794/06)
ISIN: ZAE000079810
JSE share code: ABSP
(Absa Bank)
ABSA GROUP ANNOUNCES THE ACQUISITION OF SHAREHOLDINGS IN FOUR LISTED
COMPANIES FOLLOWING CLIENT DEFAULTS RELATING TO SINGLE STOCK FUTURES
Shareholders are advised that the Absa Group has acquired shareholdings in four
companies listed on the JSE Limited, following client defaults relating to
single stock futures.
Absa Bank, acting through Absa Capital Investor Services (ACIS), a division of
Absa Capital, is a clearing member of the South Africa Futures Exchange (Safex).
As a consequence of certain clients failing to pay variation margin in respect
of single stock futures contracts, the Group has acquired equity stakes in four
listed companies:
Company Number of shares % of issued Acquisition cost
ordinary
shares
Pinnacle Point Group 1 259,6 million 28% R931,4 million
Blue Financial Services 95,9 million 16% R389,9 million
Sekunjalo Investments* 84,9 million 17% R36,5 million
ConvergeNet Holdings 86,2 million 10% R86,2 million
* Absa Corporate and Business Bank has an existing investment in Sekunjalo
Investments, bringing the Group`s total shareholding to 26%.
The shareholdings in Pinnacle Point Group and Sekunjalo Investments are
equity accounted for as associates. The investments in Blue Financial
Services and ConvergeNet Holdings have been classified as available-for-sale
financial instruments and any fair value movements will be reflected in the
"available-for-sale reserve" in equity.
In view of the size of the shareholding in the companies listed above,
the Group will be a strategic investor and work with them to realise value for
shareholders.
As a result of these events the Group has suffered minor losses that
will be accounted for in its year end results to 31 December 2008, which
will be announced on 9 February 2009.
Johannesburg
29 January 2009
For further information, contact:
Jacques Schindehutte
Group Financial Director
Absa Group Limited
+27 (11) 350 4832
Jacques.Schindehutte@absa.co.za
Sponsor:
Merrill Lynch South Africa (Proprietary) Limited
Date: 29/01/2009 17:09:02 Produced by the JSE SENS Department.
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