MGX Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1983/012697/06)
("MGX")
EC-Hold Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/02009306)
("EC-Hold")
Cautionary announcement
The executive committee of the Securities Regulation Panel has ruled that
the Mandy Rebecca Price Trust and MGX, as concert parties, concluded an
affected transaction by the acquisition of EC Hold shares before the
publication of MGX's firm intention to make an offer to the minority
shareholders of EC-Hold. The enforcement of the ruling is in the discretion
of the High Court.
MGX has at all times denied the complaints laid by the complainants and it
continues to do so. It accordingly does not accept the ruling and will
contest it with full vigour through all channels available to it.
The board of MGX states its opinion that the worst case contingent exposure
of MGX, based on the information at its disposal, would be to increase the
capital cost of its offer for EC Hold shares by approximately R45 million.
As this process is envisaged to be a lengthy one, MGX and EC-Hold
shareholders are advised to exercise caution when dealing in their shares
until a further announcement is made.
Johannesburg
15 June 2001
Merchant bank and lead sponsor to MGX
Standard Corporate Merchant Bank
(A division of The Standard Bank of South Africa Limited)
(Registration number 1962/000738/06)
Attorneys
Knowles Husain Inc
(Registration number 2000/000004/21)
Corporate law advisers and consultants to MGX and EC-Hold
Edward Nathan & Friedland (Proprietary) Limited
(Registration number 1999/026464/07)
Joint sponsor to MGX
ENF Sponsors (Proprietary) Limited
(Registration number 2000/027636/07)
Corporate adviser EC-Hold
Brait
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