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FRT
FRT
FRT - Faritec - Update to shareholders and suspension of securities
Faritec Holdings Limited
(Registration number 1998/004872/06)
Share code: FRT
ISIN: ZAE000016838
("Faritec" or "the Company")
UPDATE TO SHAREHOLDERS AND SUSPENSION OF SECURITIES
UPDATE TO SHAREHOLDERS
Shareholders are referred to the previous cautionary announcements (the last of
which was dated 26 April 2010) in relation to the steps that Faritec is taking
to address its current financial difficulties, including:
- the proposed scheme of arrangement with the unsecured creditors of the
Faritec group;
- the discussions with a management consortium and Tabara Investments (Pty)
Ltd to raise R30 million in capital; and
- the disposal of certain assets that have been identified as non-core to
Faritec`s operations.
Shareholders are advised that, as part of the steps detailed above, Faritec has
disposed of its Microsoft Large Account Reseller Business to First Technology
(Pty) Ltd with effect from 21 April 2010 for a cash consideration of R2.2
million.
Faritec has also received various offers to acquire its managed services
business. The offers include an offer from Peter Winn, a former director, to
acquire the business for a cash consideration of R3.1 million. Any disposal of
the business to Peter Winn would constitute a related party transaction and
would be conditional on the requisite shareholder approval or receipt of a
dispensation from the JSE from the requirement to obtain shareholder approval in
terms of schedule 13 of the JSE Listings Requirements. Faritec is considering
but has not yet accepted any of the offers.
Despite the various steps been taken by Faritec the Company`s working capital is
under pressure and Faritec remains in a precarious financial position.
SUSPENSION OF SECURITIES
Given that Faritec is engaging with a number of parties in relation to the
various steps been taken by it and given that the situation is constantly
evolving, the board of Faritec is concerned that it may not be in a position to
ensure the confidentiality of unpublished price sensitive development or to
ensure that the market is adequately and timeously informed of any and all price
sensitive developments as these occur. These concerns are exacerbated by the
fact that it appears that confidential information is being leaked from within
Faritec to one or more financial publications.
In the circumstances the JSE has, at the request of the board of directors
suspended the trading of Faritec shares with immediate effect. Faritec will take
all steps available to it to ensure that trading in Faritec`s shares resumes as
soon as possible. In the opinion of the board the suspension should be lifted
as soon as Faritec is able to provide shareholders with a greater degree of
certainty as to the outcome of the current steps being taken to address
Faritec`s financial difficulties. The board envisages that it should have
greater clarity in this regard within the next two weeks.
30 April 2010
Sponsor
Java Capital (Proprietary) Limited
Date: 30/04/2010 09:21:01 Produced by the JSE SENS Department.
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