MGX HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1983/012697/06)
("MGX")
ANNOUNCEMENT BY MGX
On 7 August 2001, the Executive Committee, consisting of three
members, of the Securities Regulation Panel ("the Panel"),
following its ruling that MGX and the Mandy Rebecca Price Trust
("the Trust") concluded an affected transaction as concert
parties, further ruled that MGX and the Trust are obliged to make
an offer at R2.35 per EC-Hold share to all current shareholders of
EC-Hold Limited ("EC-Hold").
MGX has considered whether, to prevent an appeal process, it
should comply with the above rulings and extend a mandatory offer
to the remaining EC-Hold shareholders at R2.35 per EC-Hold share.
MGX continues to maintain that it has not breached the regulations
of the Securities Regulation Code on Takeovers and Mergers and has
consequently noted an appeal against the above rulings.
Therefore, no offer to EC-Hold shareholders will be made until the
conclusion of the appeal process to the Full Panel and any court
proceedings that may ensue.
The implications of the above rulings, based on a worst case
scenario, would result in an increase of less than R30 million in
the cost of MGX's investment in EC Hold, as opposed to the amount
of R45 million previously announced on 15 June 2001.
Johannesburg
10 August 2001
Merchant bank and sponsor
Standard Corporate and Merchant Bank
(A division of The Standard Bank of South Africa Limited)
(Registration number 1962/000738/06)
Attorneys
Knowles Husain Inc Attorneys
(Registration number 2000/000004/21)
Corporate law advisers and consultants
Edward Nathan & Friedland (Pty) Ltd
(Registration number 1999/026464/07)
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 has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
