Otk Shareholders Approve Debtors' Book Disposal An
At a general meeting of shareholders held on 29 March 2001, agri-company OTK
Holdings' shareholders approved the sale of the company's debtors' book and
consequent cash distribution to shareholders.
The R921 million instalment sale debtors' book and interest-bearing debtors'
book have been sold to Wesbank and the Land Bank respectively, effective from
31 January 2001.
The cash distribution of R245 cents a share will be made to shareholder
registered on 6 April 2001. This will result in a R666 million reduction in
the share premium account, a R7 million reduction in share capital and a R159
million reduction in distributable reserves.
OTK chief executive officer Graham Ebedes says that OTK management has made a
commitment to creating shareholder wealth. "With this disposal, OTK has made
good its promise to restructure the balance sheet, improving return on
shareholders' funds while reducing our risk exposure to debtors," he says.
OTK will continue to manage the total debtors' book, with existing personnel
making credit decisions in terms of established credit criteria and policies.
"Clients will have no interface with the financial institutions involved and
will deal with the same personnel as in the past," says Ebedes.
ISSUED FOR : OTK HOLDINGS LIMITED
CONTACT : Graham Ebedes (011) 706 7897 Cell 083 225 1699
FAX NO: : (011) 463 4139
E-MAIL : Gebedes@otk.co.za
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart (011) 325 4195 Cell 082 443 6399
FAX NO : (011) 325-4199
E-MAIL : Tish@tspr.co.za
DATE : 30 March 2001
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