Change In Shareholding In Sa Chrome; Termination O
FERROCHROME (PROPRIETARY) LIMITED ("HERNIC"); AND
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
SOUTH AFRICAN CHROME AND ALLOYS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/003452/06)
("SAChrome" or "the company")
CHANGE IN SHAREHOLDING IN SA CHROME;
TERMINATION OF DISCUSSIONS WITH HERNIC FERROCHROME (PROPRIETARY) LIMITED
("HERNIC"); AND
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Change in shareholding
It was previously announced that Thyssen Rheinstahl Technik (in terms of
their engagement under the National Industrial Participation Programme) had
committed R70 million to SA Chrome in terms of the cash issue. These shares
have been acquired by Thyssen Krupp Metallurgie (SA Chrome's exclusive
marketing partner) and The Royal Bafokeng Nation ("the RBN"), making the RBN
the largest shareholder in SA Chrome at 34,9%.
The decision by the RBN to increase their shareholding in SA Chrome is in
line with their objective of utilizing their vast chromite reserves which
are located adjacent to SA Chrome's ferrochrome facility.
The RBN, together with SA Chrome's other single largest shareholder, The
Industrial Development Corporation at 24,5%, provide SA Chrome with critical
mass and financial strength in the company's pursuit of organic growth.
Hernic and withdrawal of cautionary announcement
Further to the announcement dated 11 June 2001 regarding the acquisition of
Hernic, the directors of SA Chrome wish to inform shareholders that
discussions in this regard have, by mutual agreement, been terminated.
Consequently, the cautionary announcement issued on 11 June 2001 is now
withdrawn and as such SA Chrome shareholders no longer need to exercise
caution when dealing in their SA Chrome shares.
In view of the increased shareholding of the RBN, their stated objectives
and their vast chromite reserves, the directors of SA Chrome believe that
the interest of shareholders would, at this stage, be better served by
organic growth to achieve the company's objective of:
becoming a 500 000 ton per annum producer in the short term;
becoming the lowest cost producer in South Africa;
becoming a world ferrochrome leader in producing an environmentally clean
product; and
achieving earnings enhancing growth.
The directors are confident that SA Chrome continues to offer shareholders
favourable returns as set out in their circular dated 22 December 2000 and
will continue to evaluate earnings enhancing opportunities for the company.
Progress report on smelter construction
The project is ahead of schedule and within budget. As from 1 August 2001,
interested parties will be able to visit SA Chrome's website
(www.sachrome.co.za) to obtain up-to-date reports on the progress of the
smelter construction.
Johannesburg
Wednesday, 4th July 2001
Sponsor to the Hernic transaction
Brait
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