| Mon 1 Mar 2010, 12:26 | | MCU - m Cubed Holdings Limited - Settlement With The Regulator And Update To |
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MCU
MCU
MCU - m Cubed Holdings Limited - Settlement With The Regulator And Update To
Shareholders
m Cubed Holdings Limited
Incorporated in the Republic of South Africa
Registration number: 1998/014568/06
Share code: MCU ISIN: ZAE000033353
("m Cubed" or "the company" or "the group")
SETTLEMENT WITH THE REGULATOR AND UPDATE TO SHAREHOLDERS
As disclosed in prior SENS announcements, the last of which was published on
SENS on 13 November 2009, there remained outstanding matters with the Regulator,
in terms of which the Regulator had retained R50 million plus interest pending
the final unwinding of the transactions referred to in a settlement agreement
concluded between m Cubed and the Regulator on 5 September 2007, and in addition
where the Regulator had ordered that an amount of R56,3 million of m Cubed`s
assets be blocked pending the outcome of their investigations regarding a matter
involving m Cubed Life Limited and an investment policy transaction with Saffron
Balm (Pty) Limited, a subsidiary of Fidentia Holdings Limited.
The board of m Cubed is pleased to announce that it has concluded a settlement
agreement with the Regulator in terms of which m Cubed shall, inter alia, make a
payment of R55 047 132.67 to the Regulator and such payment shall, inter alia,
constitute full and final settlement of all claims by the Regulator against m
Cubed and its subsidiaries. At the instance of, and by agreement with, the
Regulator the full details of the settlement are to be treated as confidential.
The board of m Cubed is awaiting the outcome of the audited results of m Cubed
as at 28 February 2009 (see paragraph 7 below). The effect of the payment made
to the Regulator shall be reflected in the reported net asset value of m Cubed.
Shareholders are however reminded that, as disclosed in the SENS announcement of
13 November 2009, there still remains an outstanding matter with the South
African Revenue Services ("SARS") and the Trustees of a discretionary offshore
trust ("the trust") of which m Cubed is a potential capital beneficiary. As
previously disclosed the Trustees of the trust, supported by their legal
advisors, are of the view that the trust has no liability towards SARS in this
regard.
As previously announced to shareholders, it has been the stated intention of m
Cubed to finalise all outstanding matters in m Cubed with a view to lift the
suspension in the trading of m Cubed shares on the JSE Limited ("JSE") as well
as to unlock any remaining value in m Cubed to its shareholders.
In line with this objective, the board of m Cubed is of the opinion that it will
only be in a position to lift the suspension in the trading of its shares on the
JSE once the financial results for the year ended 28 February 2009, the
financial results for the interim period ended 31 August 2009 and any subsequent
results that may become due to shareholders have been released to shareholders,
in accordance with the JSE Listings Requirements and other regulatory
requirements.
m Cubed is currently in the process of finalising its financial results for the
year ended 28 February 2009, which results are expected to be released during
the course of April 2010.
Shareholders are accordingly advised to continue to exercise caution when
dealing in the Company`s securities over the counter until a further
announcement is made.
Cape Town
1 March 2010
Sponsor: PSG Capital (Pty) Limited
Attorneys: Werksmans Inc.
Date: 01/03/2010 12:26:02 Produced by the JSE SENS Department.
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