TIGON LIMITED
Pietermaritzburg, 20 February 2001
Financial services group Tigon Limited today stated that it is appealing
against a judgment handed down by Acting Judge Aboobaker in Pietermaritzburg on
16 February 2001.
The judgment ruled that the company should reinstate 7 671 000 Tigon shares
issued to Bestyet Investments as payment to the vendors of 30% of the shares
and loan accounts in EuroPoint Communications SA, calculated on the earnings
prior to January 1998 as represented by the vendors. The shares amount to
0,68% of Tigon's issued share capital.
The appeal process stays the court order and the shares will not be reinstated
in the register until such time as this process has been completed.
The company stated that its legal advisers are in the process of preparing
court papers to ventilate the issue of misrepresentation by the vendors of the
shares in EuroPoint Communications SA. It pointed out that the vendors or
their appointees continued to manage the operations of the company until June
last year. It was only when new management was put in place that information
began to emerge as to the serious nature of the misrepresentations. An outside
forensic audit, which is under way, was commissioned in December 2000 following
the initial findings of Tigon's own internal audit. Tigon has contended that
the shares which were issued to the vendors' nominee, Bestyet, were not fully
paid up as a result of these misrepresentations and their issue was accordingly
void from inception.
"As this is a matter which will be the subject of legal proceedings, it would
be inappropriate to give any details in this regard," said Tigon chief
executive Gary Porritt. "In the meantime, we have acted to protect the
interests of Tigon shareholders."
ENDS
ISSUED FOR : Tigon Limited
CONTACT : Gary Porrit (033) 394 2854 Cell 082 855 9599
FAX NO : (033) 394 2218
E-MAIL : Tigon@tigonlimited.com
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart - (011) 325 4195
FAX NO : (011) 325-4199
E-MAIL : Tish@tspr.co.za
DATE : 20 February, 2001
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