| Thu 20 Jun 2002, 0:00 | | Decillion Limited - Press Release |
|
Decillion Limited - Press Release
Decillion Limited
PRESS RELEASE
20 JUNE 2002
Decillion Ltd and Wingate Capital S.A. are pleased to announce that Wingate
has agreed to subscribe for 18 million new shares in Decillion at a price of
ZAR 1.65 per share. The approximately US$ 3million of new capital will be
used by Decillion to capitalise its European operations. Decillion is
currently also proposing to raise capital for its growth through an offering
of convertible debentures.
Together with 8.44 million existing shares, which Wingate has already
purchased, Wingate will own approximately 12% of Decillion`s then issued
share capital. Wingate will be actively supporting Decillion`s expansion
and acquisition strategy within South Africa and internationally. Decillion
will be Wingate`s primary vehicle for investment in financial services in
South Africa and in Alternative Investment Management businesses elsewhere
in the world. Wingate and Decillion therefore both contemplate that
Wingate`s percentage holding in Decillion may increase, possibly
substantially.
"We have been very impressed with Decillion`s technical skills, execution
capabilities and client relationships, especially in South Africa," says Ali
Khan, Director of Business Development, Wingate Capital. "Their management
is clearly ambitious and very committed to the business, and we are
delighted to be investing alongside some of South Africa`s premier
institutions. We believe the relationship that has been forged here between
Decillion`s capabilities and Wingate`s domestic and international network
will result in Decillion`s presence increasing substantially. It is no
secret that the domestic financial services sector needs to consolidate",
says Ali Khan "and Decillion can play an important role as the consolidation
in the sector gains momentum".
In addition to the immediate subscription of shares, future opportunities
and possibilities will be monitored through the formation of a joint venture
committee. Ali Khan noted, "the objectives of this committee are to assist
Decillion in all its major areas of existing business, as well as new
product initiatives. Lastly, the JV committee will offer a platform by which
a vehicle can be created for possible offshore acquisitions."
Alwyn Smit, Decillion Group CEO, welcoming Wingate as investors commented,
"We have been somewhat constrained both as to capital and executive manpower
in the scope and size of the initiatives which are able to pursue both in
South Africa and internationally. With our new partner`s expertise and
access to financial resources, we will look carefully at the major
initiatives that we have not felt able to pursue, or even analyse in depth.
Now we can investigate these thoroughly and select those which represent the
most attractive growth avenues. We also expect the domestic market to
follow our shares more closely as we increase our market capitalisation,
and this in turn will help us interest overseas investors and eventually
raise capital from new as well as existing shareholders for the right
opportunities".
Wingate Capital S.A. is a privately owned asset management company based in
Geneva, Switzerland and with smaller subsidiaries or associates in the USA,
UK and South Africa. As a consequence of various business initiatives,
Wingate Capital enjoys a close relationship with a number of FTSE 100
companies in the UK, and Fortune 500 companies in the US, as well as with
other major investors and financial institutions. See also www.wingatesa.com
"Wingate Capital has enjoyed significant experience in emerging markets, and
we are very comfortable with the unique dynamics such a market exhibits
Decillion will enable us to increase our presence on the ground and
therefore capitalise on the various opportunities that exist. Wingate is
delighted that we can deal with a highly regarded South African specialist
who also has operations very close to our home base in Switzerland",
concludes Khan.
"At a time when the local market is sometimes a little gun shy, it is great
to be able to attract a new and exciting offshore investor to Decillion. We
view this as only the start of a prosperous and long term win-win
relationship", says Smit.
For further information contact:
Alwyn Smit
Decillion Ltd
Tel : +27 11 328 1205
+41 22 990 1007
Ali Khan
Wingate Capital SA
Tel : + 41 22 909 6910
Date: 20/06/2002 04:44:00 PM Produced by the SENS Department
