Regal Treasury Bank Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/023778/06)
("Regal")
Sempres International Technology Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/005280/06)
("Sempres")
Strategic alliance between Regal and Sempres
Mettle Limited is authorised to announce that Regal and Sempres (collectively
"the parties") have entered into a strategic alliance, in order to further
strengthen the current relationship between the two companies and to facilitate
closer cooperation between them in the future.
This strategic alliance was effected by:
- the acquisition of 3 000 000 ordinary Regal shares (being 2.9% of the issued
share capital of Regal) by Sempres at a price of R4.70 per share, being the
price of Regal shares on the JSE Securities Exchange South Africa ("the JSE")
on 28 February 2001, being the date on which agreement was reached ("the date
of agreement"); and
- the acquisition of 18 000 000 ordinary Sempres shares (being 9.7% of the
issued share capital of Sempres) by Regal at a price of R3.20 per share, being
the price of Sempres shares on the JSE on the date of agreement (collectively
"the transaction").
Sempres is the owner of certain wireless network facilities and microprocessor
technology which enable, amongst others, a smart card payment system that is
both secure and convenient ("the Technology"). Sempres has the expertise and
capability to further develop and enhance the Technology to provide an
extensive user network for use by a wide and diversified user base. Sempres is
willing to make the Technology available to Regal for its use and application
in its operations which will include wireless banking applications.
Subject to joint confidentiality undertakings, Regal has acquired a
preferential user right to utilise the Technology or any applications thereof
and, in turn, is making available to Sempres, access to Regal's established
banking network and infrastructure within which the Technology may be applied.
This preferential user agreement has been entered into by the parties, which
has the effect of rendering the entire transaction cash neutral.
The Boards of directors of Regal and Sempres have confirmed their commitment in
jointly and actively pursuing new initiatives for the joint benefit of Regal
and Sempres.
Further information may be obtained from:
Regal Sempres
Chris van der Walt Hendrik Bruinette
Tel: (011) 257-8000 Tel: (012) 663-3941
Johannesburg
14 March 2001
Sponsor to Regal
Mettle
Mettle Limited Reg. No. 1965/010057/06
Corporate Finance Division
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