| Wed 1 Sep 2010, 9:31 | | BFS - Blue Financial Services Limited - Update on the issue of the financial |
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BFS
BFS
BFS - Blue Financial Services Limited - Update on the issue of the financial
results of Blue for the year ended 28 February 2010("the 2010 results")
BLUE FINANCIAL SERVICES LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 1996/006595/06
Share Code: BFS
ISIN: ZAE000083655
("Blue" or "the Company")
UPDATE ON THE ISSUE OF THE FINANCIAL RESULTS OF BLUE FOR THE YEAR ENDED 28
FEBRUARY 2010("THE 2010 RESULTS")
1. Shareholders are referred to the Provisional Condensed Consolidated
Reviewed financial results for the year ended 28 February 2010, released on
21 June 2010 (the "provisional results") on the Securities Exchange News
Service ("SENS") of the JSE Limited, wherein it was disclosed, that Blue
incurred a loss for the year of R1 030 million.
2. The Company further announced on 10 June 2010 that it had entered into a
Subscription Agreement with the Mayibuye Group (Proprietary) Limited
("Mayibuye") whereby Mayibuye will inter alia, subscribe for R163 million
ordinary shares in the Company ("the Mayibuye transaction").
3. Shareholders are also referred to the announcement released on SENS on 23
June 2010, regarding an update on the disclaimer of conclusion issued by
the Company`s independent auditors, Deloitte & Touche ("Deloitte")on the
provisional results. The disclaimer of conclusion was issued as a result of
the Mayibuye transaction being a key component to restore the Company to
profitability. As a result of the Mayibuye transaction not yet becoming
unconditional and further uncertainties as indicated in the basis for
disclaimer of conclusion at that date, the disclaimer of conclusion was
issued by Deloitte due to the significance of the uncertainties in this
regard.
4. Shareholders are also referred to the update announcement released on SENS
on 12 August 2010 wherein it was indicated that certain key conditions
precedent of the Mayibuye transaction had been fulfilled and that progress
was ongoing in relation to finalising the remaining conditions precedent.
5. Shareholders are advised that as at 31 August 2010:
5.1 The majority of funders who are party to the Debt Rescheduling
Agreement have signed same.
5.2 The Claims Purchase Agreement which forms part of the remaining
conditions precedent is close to finalisation.
6. For purposes of issuing an audit opinion on the audited financial
statements for the year ended 28 February 2010, all further developments
with regard to the fulfillment of the conditions precedent, further
uncertainties and any other factors prevalent at that time need to be
considered by Deloitte.
7. Accordingly the Company is of the view that, as the fulfilment of the
remaining conditions precedent is imminent, it is in the best interests of
shareholders to delay the issue of the 2010 Results until such time as
there is finality in relation to the Mayibuye transaction, (but in any
event not later than 30 days from the date of this announcement), such that
it would enable Deloitte to consider the impact of this on their audit
opinion.
A further announcement providing an update on the Mayibuye transaction as well
as on the timing of the publication of the 2010 Results will be made in due
course.
Pretoria
1 September 2010
Designated Advisor: Grindrod Bank Limited
Date: 01/09/2010 09:31:12 Produced by the JSE SENS Department.
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JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
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