WLO/WLN/WLOP/WLP1 - Wooltru Limited - Settlement agreement reached in respect of
WLO WLN WLP1 WLOP
WLO
WLO/WLN/WLOP/WLP1 - Wooltru Limited - Settlement agreement reached in respect of
legal proceedings
Wooltru Limited
(Incorporated in the Republic of South Africa)
(Registration number 1936/008278/06)
Share code: WLO ISIN CODE: ZAE000007993
Share code: WLN ISIN CODE: ZAE000008744
Share code: WLOP ISIN CODE: ZAE000008009
Share code: WLP1 ISIN CODE: ZAE000008017
("Wooltru")
Settlement agreement reached in respect of legal proceedings
Wooltru is involved in legal proceedings in terms of which certain persons ("the
claimants") have claimed post retirement medical aid benefits from Johnnic Book
Retail Limited ("Johnnic"). The claimants retired from the business of Central
News Agency ("CNA") before September 1997. Wooltru was joined in the proceedings
by Johnnic as it is claimed that in certain circumstances Wooltru would be
liable for the claims. Wooltru notes a contingent liability in its financials
of R13.9 million and has provided Johnnic with a bank guarantee of R20.9 million
("the guarantee") while it continued to defend the proceedings.
Wooltru has entered into a settlement agreement with all the parties concerned
in terms of which:
- The legal proceedings will be withdrawn and the parties will have no claims
against each other, other than in terms of the settlement agreement;
- Wooltru will pay up to R4.35 million ("the settlement") to the claimants;
- Wooltru has indemnified Johnnic against similar future claims ("future
claims"); and
- Once 50 % of the claimants have been paid the guarantee will be reduced to R2
million plus any outstanding amounts due in terms of the settlement. The
reduced guarantee will cover future claims, which will be dealt with should
they arise. After a period of two years the guarantee will lapse.
Wooltru will in future no longer note a contingent liability in this regard and
will expense the entire settlement amount of R4.35 million during the current
financial period.
Cape Town
15 December 2008
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 15/12/2008 14:29:28 Produced by the JSE SENS Department.
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