Press Release
Isin Code : ZAE000010054
Share Code : GBL
Johannesburg - Wednesday October 10, 2001
Investment trust Genbel South Africa will remain in its current form for a
while longer.
Speaking after the company's annual general meeting held in Johannesburg
today, interim managing director Anton Botha said that the board was still
considering the company's future. In Genbel's annual report for the year to
June 30, shareholders were told that because of the introduction of capital
gains tax (CGT), an investment trust is no longer a competitive investment
product from a tax point of view. This led the board to examine ways of
restructuring Genbel that could include the realising of Genbel's assets.
At the time, the board said: "We have decided to reconsider Genbel's future
as an investment trust as soon as the possibility of realising Genbel's
unlisted investments, including its investment in Gensec NSA Equity Fund,
and its interest in Gensa Trading, together with the possibility of securing
Genbel's release from concomitant commitments, on an acceptable basis, can
be determined."
With any reconstruction the board's stated objective is to deliver maximum
value to shareholders either through alternatives such as an offer to
purchase the company, the liquidation of the company or other appropriate
action. The board has been advised that in the event of liquidation no
secondary tax on companies will be payable.
Today Mr Botha noted that although the board had received offers for
Genbel's unlisted investments, the directors do not believe they are
sufficiently attractive to recommend to shareholders. "We recognise that
the sale of assets in the current turbulent market conditions will not be
easy but Genbel will not accept anything less than a satisfactory deal for
all shareholders. Aside from the unlisted investment in private equity and
the trading company, Genbel has a diversified portfolio of shares."
In April the Genbel board appointed advisors to recommend future strategies
for the company in the light of the negative impact of CGT on investment
trusts and the persistent discount at which Genbel trades to its net asset
value. The board has reviewed a number of proposals in the past few months
but, according to Mr Botha, has not yet received a satisfactory offer.
Mr Botha gave an undertaking that as soon as an acceptable offer for the
company's assets was received, shareholders would be informed.
ends
Please note:
Genbel South Africa is South Africa's leading closed end investment trust
with a diversified portfolio of South African and international assets
valued at around R733-million.
The fund invests in carefully selected companies, which exhibit above
average long-term growth prospects. The company's objective is to achieve
sustainable capital growth over the long term by investing in companies
expected to produce superior returns.
The company strives to significantly outperform the JSE Financial and
Industrial Index over the longer term.
Genbel's performance is measured by its growth in net asset value and market
capitalisation. Income criteria are unreliable guides to performance as
earnings fluctuate between reporting periods
ends
ISSUED BY : PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF : GENBEL SOUTH AFRICA
FURTHER INFORMATION: PENELOPE GRACIE
CONTACT : OFFICE +27 (11) 447-3301
: HOME +27 (11) 442-6674
: MOBILE 082-55-77-444
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