| Thu 15 Sep 2011, 15:00 | | BEL - Bell Equipment Limited - Changes to commercial relationship with |
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BEL
BEL
BEL - Bell Equipment Limited - Changes to commercial relationship with
John Deere Construction and Forestry Company and withdrawal of cautionary
Bell Equipment Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1968/013656/06)
ISIN: ZAE000028304
Share Code: BEL
("Bell" or "the Company")
CHANGES TO COMMERCIAL RELATIONSHIP WITH JOHN DEERE CONSTRUCTION AND
FORESTRY COMPANY AND WITHDRAWAL OF CAUTIONARY
Shareholders are referred to the cautionary announcement issued on 25 May
2011, which was renewed on 7 July and 19 August 2011. Shareholders were
advised that discussions which relate to the Company which could have a
material effect on the price of the Company`s shares, were still
underway. Shareholders are hereby further advised that the continuing
discussions are between the two major shareholders, I A Bell & Co (Pty)
Limited ("I A Bell") and John Deere Construction & Forestry Company
("Deere"), and relate to the future ownership of Deere`s 31,59%
shareholding in Bell.
Following the launch by Deere of its own range of articulated dump trucks
("ADTs") and confirmation by Bell that it will continue with the design
and manufacture of its own range of ADTs, Bell and Deere have been
involved in discussions to amend or terminate certain product agreements
between them, including the ADT manufacturing and distributor agreement
in terms of which Deere currently manufactures, assembles and distributes
Bell designed ADTs in certain markets under an exclusive distributor
mandate.
Although discussions are ongoing between the parties the successful
completion of these negotiations and the amendment of the current license
agreements between Deere and Bell will end the exclusivity provisions,
facilitating Bell`s direct entry into certain strategic markets, in
particular with respect to ADTs. Deere would also be free to sell its
ADTs and other products throughout the world. Although the amendment of
these agreements will result in a change to the commercial relationship
between the parties in the medium to long term, both Deere and Bell have
expressed their intention to remain committed as partners in other areas.
In this regard it can be confirmed that discussions are also underway to
ensure the continuation of Bell`s role as Deere`s dealer of construction
and forestry equipment in South Africa and a number of other countries in
Sub-Saharan Africa.
If Deere disposes of its interest in Bell, the Deere nominated directors
will step down as directors of Bell. If not, the issue of possible
conflicts of interest of these directors will have to be dealt with.
Accordingly, shareholders are advised that the cautionary announcement is
hereby withdrawn and that shareholders will be kept informed of any
further developments in this regard.
Richards Bay
15 September 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 15/09/2011 15:00:01 Produced by the JSE SENS Department.
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