| Wed 9 May 2001, 0:00 | | Psgbh Proposed Substitution Of A Cash Payment |
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PSG INVESTMENT BANK HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/017358/06)
("PSGBH" or "the company")
PROPOSED SUBSTITUTION OF THE DISTRIBUTION IN SPECIE OF SHARES IN VELOCITY
HOLDINGS LIMITED ("Velocity") WITH A CASH PAYMENT
Shareholders were advised on 5 April 2001 and 3 May 2001 that:
- the directors of PSGBH had proposed a distribution of 16,6 cents in respect
of the year ended 28 February 2001 in the form of a cash dividend of 8 cents
per share and the distribution of shares in Velocity in the ratio of 1,3
Velocity shares for every 100 PSGBH shares held ("the Velocity unbundling");
- the last date to register for the above was the close of business on Friday,
1 June 2001 with payment on Monday, 4 June 2001;
- the Velocity unbundling was conditional upon PSGBH shareholders passing the
required ordinary resolution at the annual general meeting to be held on 24 May
2001, notice of which was posted to shareholders on 2 May 2001.
At the request of a number of PSGBH shareholders, other than PSG Group Limited,
the directors of PSGBH have resolved to propose that the resolution authorising
the Velocity unbundling be modified to substitute the Velocity unbundling with
a cash payment of 8,6 cents per share.
The effects of the modification, if approved, will be that shareholders will
receive a cash distribution of 16,6 cents in the form of a dividend of 8 cents
per share and a capital reduction of 8,6 cents per share.
PSGBH holds 96% of the share capital of Velocity which continues its business
as an investment company.
Shareholders who have already returned a form of proxy in respect of the
ordinary resolution authorising the Velocity unbundling and wish to change the
manner in which they voted in relation to the modification, may request copies
of the form of proxy from the transfer secretaries, Computershare Services
Limited, 2nd Floor, Edura House, 41 Fox Street, Johannesburg 2001 (PO Box
61051, Marshalltown 2107).
By order of the board
Nathiera Abdullah
Company secretary
Rondebosch
9 May 2001
Investment bank and joint sponsor
PSG Investment Bank
Attorneys
FRRW
Fluxman Rabinowitz - Raphaely Weiner Inc. Attorneys
www.frrw.co.za
Joint sponsor
PricewaterhouseCoopers
Corporate Finance (Pty) Ltd
(Registration number 1970/003711/07)
PSG INVESTMENT BANK (PSGBH) CHANGES DISTRIBUTION TO SHAREHOLDERS
PRESS RELEASE - 9 MAY 2001
PSGBH today announced that it would no longer distribute Velocity shares
equivalent to 8,6 cps to shareholders but substitute such with an equivalent
cash payment. The total dividend and distribution amounts to 16,6 cents per
share, payable on 4 June 2001.
CEO, Andre la Grange commented:
"We had numerous calls from our institutional shareholders who requested the
change. The change is easy, it makes sense and has limited effect on PSGBH or
its holding company, PSG Group, so we changed".
Institutions requested the change as a result of:
- the size of Velocity +- R130m, a small cap stock
- the limited number of Velocity shares that would be held by shareholders
other than the PSG Group: a free float of +- 26% with a market value of R28m ,
and
- dealing costs on small holdings
The plans for Velocity remain unchanged and the company will continue its
business as an investment company.
Jannie Mouton, the PSG Group Chairman, commented:
"The change shows the flexibility of the PSG Group and its willingness to
listen to its partners".
