Closure Of Siltek's Australian Operations And Furt
ANNOUNCEMENT
Siltek Limited
(Registration number 1942/015386/06)
("Siltek" or "the company")
- Closure of Siltek's Australian operations
- Further cautionary announcement
1. Introduction
Following an evaluation of its Australian operations, which comprise of a
75% holding in both Agate Technology Pty Limited and Siltek Holdings Pty
Limited (collectively "Siltek Australia"), the Siltek Board of Directors
("the board") has elected to place Siltek Australia under voluntary
administration ("the closure").
2. Rationale for the closure
The unalleviated downturn in demand for IT products in Australia has
resulted in Siltek Australia continuing to incur losses. The board has
evaluated a number of proposals for the continued operation of Siltek
Australia and is of the view that closure is the optimal solution.
The closure will eliminate the continued losses incurred by Siltek Australia
and will allow Siltek management to focus their attention on the South
African operations.
3. Financial effects
The table below sets out the financial effects of the closure on the
headline loss and net asset value per Siltek share, had the closure been
effective for the six months ended 31 December 2000:
Per Siltek share Before After Change Change
(cents) (cents) (cents) (%)
Headline loss (86,97) (25,20) (61,77) 71%
Net asset value 208,90 273,60 64,73 31%
- The headline loss and the net asset value as reflected in the Before
column are extracted from the company's interim results as published in the
press on 21 February 2001;
- the After position in respect of the headline loss assumes that the
closure was effective from 1 July 2000 and that losses of R42,90 million
were attributable to Siltek Australia for the six months ending 31 December
2000; and
- the After position in respect of net asset value assumes that an amount of
R44,95 million, which represents the total losses (including exceptional
items) for the six months ended 31 December 2000 of Siltek Australia, have
been excluded from the Siltek balance sheet as at 31 December 2000.
Final closure costs net of any recoveries will be communicated to
shareholders once these amounts are finalised.
4. Further cautionary announcement
Further to the cautionary announcements dated 25 April 2001 and 7 June 2001,
shareholders are advised that Siltek is still considering various options
relating to the possible restructuring of the company, the outcome of which
may have an effect on the price of Siltek shares.
Accordingly, shareholders are advised to continue exercising caution when
dealing in their Siltek shares until a further announcement is made.
Midrand
25 July 2001
Rand Merchant Bank
Corporate Finance
Merchant bank and sponsor
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