Absa Group Limited - Comment On Exposure To Siltek
Implementation of the MSCI.
ISIN Code : ZAEOOOO13389
Share Code : ASA
ABSA GROUP LIMITED: COMMENT ON EXPOSURE TO SILTEK GROUP AND THE
IMPLEMENTATION OF THE MSCI
A high level of interest has been evident in the Absa Group's exposure to
the Siltek group and the effect of the imminent implementation of the Morgan
Stanley Capital Index (MSCI).
Siltek Holdings (Proprietary) Limited has been placed into provisional
liquidation by the directors, owing to the company being in a technically
insolvent position.
Siltek Holdings (Proprietary) Limited's utilisation of facilities with Absa
Corporate and Merchant Bank as at liquidation equates to R52,2 million.
There is no other Absa Bank Group exposure to the Siltek group and Absa
Bank's exposure is partially secured and is adequately provided.
Absa Bank's debtor is Siltek Holdings (Proprietary) Limited, which is the
main operating company within the group and is 100% owned indirectly by
Siltek Limited (the listed entity).
When the provisional Morgan Stanley Capital Index was announced in May 2001,
Absa was excluded. While no conclusive explanation is available it appears
that Absa's exclusion was the result of its free float market capitalisation
being the lowest of the major SA commercial banking groups.
The changes in the MSCI will be implemented in the Standard Index Series in
two separate phases, the first as of the close of 30 November 2001 and the
second as of the close of 31 May 2002.
Issued by: Willie Roux
Group consultant: Investor Relations
Telephone: 2711 350-4061
E-mail: willier@absa.co.za
Further inquiries: Frans du Toit
Group executive director
Telephone: 2711 350-4211
E-mail: fransdt@absa.co.za
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 has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
