CSB
CSB
CSB - Cashbuild Limited - Cautionary announcement
Cashbuild Limited
(Incorporated in the Republic of South Africa)
(Registration number 1986/001503/06)
Share code: CSB ISIN: ZAE000028320
("Cashbuild" or "the company")
Cautionary announcement
Shareholders are advised that in 2005, Cashbuild implemented a Broad Based
Black Economic Empowerment transaction ("the BEE transaction") through the
introduction of all of its employees, of whom more than 90% qualified as
historically disadvantaged South Africans.
The transaction was effected through the establishment of a blind perpetual
trust, The Cashbuild Empowerment Trust ("the Trust"), which subscribed for
10% of the issued shares in Cashbuild. The Trust was funded by way of an
interest free loan from Cashbuild Management Services (Proprietary) Limited
("CMS"), a wholly owned subsidiary of Cashbuild. The loan provided by CMS
was in the amount of R75 million, and was used to acquire approximately 2,5
million ordinary shares at a price of R29.09 per share.
Since the implementation of the BEE transaction, the share price of Cashbuild
has increased substantially and accordingly there is a large equity value
attributed to the Trust.
Shareholders are advised that Cashbuild is currently planning to return
approximately 45% of the current equity value attributable to the Trust,
which equates to approximately R50 million to the beneficiaries of the
Trust. Shareholders are thus advised to exercise caution when dealing in
their securities, until a full announcement has been made.
Johannesburg
21 September 2010
Investment bank and sponsor
Nedbank Capital
Date: 21/09/2010 08:05:04 Produced by the JSE SENS Department.
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