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AFP - Alexander Forbes Preference Share Investments Limited - Shareholder Update
Alexander Forbes Preference Share Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 2006/031561/06)
Share code: AFP & ISIN number: ZAE000098067
SHAREHOLDER UPDATE
Shareholders are referred to the contingent liability disclosures made in the
financial statements of Alexander Forbes Equity Holdings (Pty) Limited over the
past number of years relating to the civil summons received from the curator of
seven retirement funds ("the Curator"). The matter relates to transactions that
took place between the Lifecare fund and the seven retirement funds during the
period 1992 to 1997. The Alexander Forbes Financial Services business unit
acted as consultants, actuaries and administrators to the Lifecare fund during
that time.
Shareholders are advised that Alexander Forbes, with the full support of the
Alexander Forbes Board and the sanction of the FSB, has engaged in positive
negotiations with the Curator which it is hoped will provide a swift resolution
of the disputes between them. Alexander Forbes has made a substantial written
offer to the curator demonstrating Alexander Forbes` willingness to resolve the
situation as quickly and fairly as possible and has also undertaken to assist
the Curator in securing a resolution of disputes between them and other parties
involved in this matter.
The detailed terms of the settlement offer are currently confidential. However,
if the offer is accepted by the Curator, the financial impact of this settlement
offer on the Alexander Forbes Group, net of anticipated recoveries from
insurance underwriters who were represented during these negotiations, is not
expected to be more than R50 million in excess of provisions previously made by
the group in respect of this matter.
5 February 2010
Sandton
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 05/02/2010 12:43:01 Produced by the JSE SENS Department.
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