Proposed Merger Of Trencor's Henred-fruehauf Trail
bodies
TRENCOR LIMITED
(Reg No 1955/002869/06)
("Trencor")
Share Code: ISIN:
TRE ZAE000007506
TED2 ZAE000007282
MOBILE INDUSTRIES LIMITED
(Reg No 1968/014997/06)
("Mobile")
Share Code: ISIN:
MOB ZAE000004602
MBN ZAE000012274
MOBD ZAE000004610
PROPOSED MERGER OF
TRENCOR'S HENRED-FRUEHAUF TRAILER DIVISION WITH SA TRUCK BODIES
Holders of securities in Trencor and Mobile are advised that the boards of
directors of Trencor and its wholly-owned subsidiary, Henred-Fruehauf
Trailers (Pty) Ltd ("Henred"), have agreed in principle to merge the Trailer
Division of Henred with the businesses of ADF Holdings (Pty) Ltd ("ADF") and
its subsidiaries ("SA Truck Bodies") into a single new entity with effect
from 1 November 2001.
The assets and liabilities of the Trailer Division and its personnel will be
transferred, as a going concern, in exchange for a 40% interest in the
merged entity, with corresponding board representation, and management
control will effectively vest with ADF as 60% shareholder.
Apart from stemming past losses associated with the Trailer Division, the
transaction will in the short term not have a material effect on Trencor.
The Trencor board is of the opinion that the new merged entity will become a
significant force in the Southern African trailer manufacturing and
retailing industry. The merger creates a more sustainable operation with
resultant reduction in cost, increased financial strength and a stronger
asset base to operate within the local and foreign trailer markets.
The proposed transaction is subject to the necessary regulatory approvals.
ON BEHALF OF THE BOARDS
NI JOWELL CHAIRMAN TRENCOR LIMITED
C JOWELL CHAIRMAN MOBILE INDUSTRIES LIMITED
25 OCTOBER 2001
CAPE TOWN
www.trencor.net
www.mobile-industries.net
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