DLG - Dialogue Group Holdings - Liquidation by wholly-owned subsidiary of
DLG
DLG
DLG - Dialogue Group Holdings - Liquidation by wholly-owned subsidiary of
Dialogue Group Holdings Limited
DIALOGUE GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 2005/039219/06)
Share code: DLG & ISIN: ZAE000083820
("the Company" or "the Group")
LIQUIDATION BY WHOLLY-OWNED SUBSIDIARY OF DIALOGUE GROUP HOLDINGS LIMITED
Shareholders of the Company are advised of the decision taken by the board of
directors ("the Board") of Dialogue South Africa (Pty) Ltd ("Dialogue SA") to
liquidate Dialogue SA, a wholly-owned subsidiary of the Group.
Dialogue SA`s business operations have been under severe performance pressure
and non-profitable for an extended period. Dialogue SA had undertaken an
extensive cost reduction programme and a restructuring of the management team
during the 2009 financial year ("the restructuring"). This restructuring cost
R2.9 million and reduced operating costs by R16 million annually. Despite the
restructuring, the Board noted that Dialogue SA had been unable to prove a
robust business model for sustainable profitability and that Dialogue SA will
not be able to continue as a viable business and going concern.
Dialogue SA will endeavour to provide its clients, and other parties affected by
the liquidation, with the necessary communication in due course.
Dialogue Group Holdings Limited will incur no impairment in its financial
results going forward pertaining to the investment in Dialogue SA, as the
investment was a start-up operation. Dialogue SA had an accumulated loss of
R10.5 million as at 30 June 2009 and incurred a loss of R15.9 million during the
period 1 January 2009 to 30 June 2009. Subsequent to the liquidation, Dialogue
SA will no longer negatively impact the financial results of the Group.
Johannesburg
26 February 2010
Designated Adviser: PSG Capital (Pty) Ltd
Date: 26/02/2010 15:00:02 Produced by the JSE SENS Department.
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