Saambou Holdings Limited - Withdrawal Of Cautionar
PROPOSED RECONSTITUTION OF THE BOARD OF DIRECTORS AND ISSUE OF SHARES FOR
CASH
SAAMBOU HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004170/06)
("Saambou" or "the company")
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT,
THE PROPOSED RECONSTITUTION OF THE BOARD OF DIRECTORS AND
ISSUE OF SHARES FOR CASH
1. Withdrawal of cautionary announcement
Shareholders are referred to the cautionary announcements dated 24 April
2001 and 6 June 2001, and are advised that Investec Group Limited
("Investec") in consultation with the Saambou board has decided to maintain
its stake in Saambou via its wholly-owned subsidiary Fedsure Life Assurance
Limited ("Fedsure Life"). As the negotiations relating to Fedsure Life's
shareholding in Saambou have been terminated, caution is no longer required.
2. Proposed reconstitution of the board of directors of Saambou
It is intended that, on obtaining regulatory approval, David Lawrence,
Bradley Tapnack, David Nurek and Glynn Burger of Investec will replace the
existing Fedsure directors appointed to the Saambou board.
3. The issue of shares for cash
3.1 Introduction
The board of directors of Saambou will issue 5,58 million new Saambou
ordinary shares to public shareholders at R11,50 per share raising R64,17
million, in accordance with the general approval for the issue of shares for
cash obtained from Saambou shareholders at the general meeting held on 31
August 2000.
3.2 Rationale
The issue of shares for cash and the transfer of approximately R100 million
of capital to Saambou Bank Limited ("Saambou Bank") from excess capital
available within Saambou, will enable Saambou Bank to strengthen its capital
adequacy ratio to approximately 12,0%, to fund expansion and to position
Saambou Bank appropriately above the new capital adequacy ratio of 10,0%,
which will become effective in October 2001.
3.3 Financial effects
The effect of the issue of shares for cash on Saambou's earnings and net
asset value is not considered to be material.
3.4 Listing of the shares
Application has been made to the JSE Securities Exchange South Africa to
list 5,58 million new Saambou ordinary shares from the commencement of
business on Monday, 23 July 2001.
Pretoria
19 July 2001
Merchant Bank
Investec Bank Limited
(Registration number 1969/004763/06)
Sponsor
ABN-AMRO Securities (South Africa) (Pty) Ltd.
Registration number 1995/001231/07
Member of the JSE Securities Exchange South Africa
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
