| Thu 18 Feb 2010, 10:48 | | WEZ - Wesizwe Platinum Limited - Update To Shareholders |
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WEZ
WEZ
WEZ - Wesizwe Platinum Limited - Update To Shareholders
Wesizwe Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/020161/06)
JSE code: WEZ & ISIN: ZAE000075859
Wesizwe Platinum Limited
(the "Company" or "Wesizwe")
UPDATE TO SHAREHOLDERS
This SENS announcement appears as a matter of record.
The Chairman of Wesizwe Platinum Limited, Ms Dawn Mokhobo, on behalf of the
Board of Directors, has today posted a letter to shareholders` that provides an
update on certain actions being initiated within the Company. The text of the
letter appears below.
Wesizwe Platinum Limited
18 February 2010
Dear Shareholder,
On behalf of the Board of Directors, and as the incoming Chairman of Wesizwe
Platinum Limited (Wesizwe or the Company), I would like to update you on certain
activities within Wesizwe and address some of the key issues facing the Company
as we move forward into 2010.
On 17 December 2009, an extraordinary meeting of Wesizwe shareholders was held
and the majority of shareholders voted in favour of a reconstituted Board of
Directors and mandated the Board to take the Company forward. The new Board met
for the first time on 11 January 2010 to address the issues facing the Company
and at this meeting, the following decisions were made:
Certain allegations have been made against the Company and the Board has decided
that a thorough investigation be conducted by Deloitte and Deneys Reitz as an
expansion of a review initiated by the previous Board. Deloitte and Deneys
Reitz have been asked to continue and finalise the review in order to allay
fears that these issues are being swept under the carpet.
The Board reappointed Michael Solomon as the Chief Executive Officer (CEO) after
both he and Robert Rainey were re-elected as directors by shareholders at the
general meeting held in December 2009. Various allegations that have been made
against these two directors about past corporate governance misdemeanours, and
which continue to be made against them, are as yet unsubstantiated. The
extended review referred to above will investigate these allegations and will
provide the affected directors an opportunity to respond to any allegations
made. The Board will then act on the results of this completed review.
In line with King 3, the Board has reconstituted the Board committees, which now
have a majority of non-executive and independent directors. These committees
include:
Audit and Risk Committee
Goleele Mosinyi Chairman
Julian Williams
Rob Rainey
Dawn Mokhobo
Community member to be appointed
Remuneration and Nomination Committee
Mlibo Mgudlwa Chairman
Dawn Mokhobo
Kgomotso Moroka
Peter Gaylard
Rob Rainey
Community member to be appointed
Finance and Investment Committee
Julian Williams Chairman
Goleele Mosinyi
Kgomotso Moroka
Mike Eksteen
Michael Solomon
Community member to be appointed
Technical Committee
Prof Peter Gaylard Chairman
Mlibo Mgudlwa
Mike Eksteen
Michael Solomon
Community member to be appointed
In addition to this, the Board has established the Chairman`s Oversight
Committee, which comprises the Chairman of the Board and the respective chairs
of the four Board committees. The Chairman`s Oversight Committee will provide
for a more hands-on approach by the Board in the running of the Company`s
business. It will also streamline the decision making and consultative
processes. The Chairman`s Oversight Committee includes:
Dawn Mokhobo, Chairman
Goleele Mosinyi, Chairman of the Audit and Risk Committee
Prof Peter Gaylard, Chairman of the Technical Committee
Mlibo Mgudlwa, Chairman of the Remuneration and Nomination Committee
Julian Williams, Chairman of the Finance and Investment Committee
Because of confusion that has arisen in relation to the proper representation of
the Bakubung Ba Ratheo Community`s (the Community) shareholding in the Company,
the Board has set up a special Committee headed by the Chairman to investigate
all aspects related to the Community`s shareholding, in particular the Newshelf
925 (Pty) Ltd structure and issues pertaining to representation of the Community
on the Board of the Company and its Committees.
The Board also elected not to renew certain executive contracts that are about
to expire and for that reason will soon appoint a new Financial Director.
The Company is currently under cautionary with respect to potential transactions
and the Board has mandated the CEO to pursue those opportunities. He has been
working closely with the Chairman of the Company, as well as the Chairmen of the
Finance and Investment Committee and Technical Committee, to progress
negotiations and to thoroughly assess the potential value of these proposed
transactions for shareholders.
As a shareholder, you have an undertaking from the Board that Wesizwe will be
moving forward with new momentum and resolve to unlock the considerable value of
Wesizwe`s assets. As Chairman, I will personally be committing a great deal of
time to the restructuring of the Company and to the conclusion of the
negotiations currently underway. In the interim, the restructuring of the
Company will be driven by the outcome of the current negotiations.
The Board of Directors, including the Chairman, are available to address any
issues that you as shareholders may have, so please feel to contact any member
through the Assistant Company Secretary, Ilona Devereaux, at email:
ilona@wesizwe.com
Yours faithfully,
On behalf of the Board of Wesizwe Platinum Limited
Dawn Mokhobo
Chairman
18 February 2010
Sponsor: Investec Bank Limited
Date: 18/02/2010 10:48:02 Produced by the JSE SENS Department.
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