NATIONAL SPORTING INDEX LIMITED
(Incorporated in the Republic of South Africa)
(Registration No 1998/0020418/06)
("NSI")
JSE Code: NSI - ISIN No: ZAE000018172
Further to the announcement of 27th November 2001, the Directors of National
Sporting Index Limited ("NSI") wish to update shareholders on progress to
date.
Disposal of Gaming Interests
Shareholders were advised of the termination of discussions with Phumelela
Gaming and Leisure Limited regarding the disposal of NSI's gaming interests.
The Board of NSI is currently involved in discussions that could result in
the disposal of certain of the gaming assets on a break-up basis.
Acquisition of BedRock Capital
The acquisition remains subject to the conditions precedent set out in the
announcement of 27th November 2001 as well as the terms and conditions of
the acquisition agreement.
Suspension of Listing
Trading Conditions
The previous directors of NSI embarked on an uncontrolled program of credit
extension to gaming clients, and failed to exercise due consideration and
care in their administration of the debtors book. As a result, NSI has a
debtors book of approximately R5,28 million, against which the new directors
had to make extensive provisions in the financial year end accounts. During
December 2001, collections on the book slowed dramatically. In addition to
this, substantial debtors' cheques were returned unpaid by the respective
bankers in December.
The Directors of NSI have decided to hand over the entire collection of the
outstanding debtors book to Snyman & Vennote, a highly respected firm of
attorneys specialising in nationwide debt collection. The Directors have
decided that no further extensions or accommodation will be offered to
debtors.
As a result of non-payment by substantial debtors of NSI, NSI has been
forced to reconsider its funding needs and has embarked on a strategy to
recapitalise the company in the short term.
Share Trading
The Directors have requested the Listings Division of the JSE Securities
Exchange South Africa to suspend trading in NSI's shares because there is
uncertainty surrounding the possible successful outcome of the
recapitalisation exercise and the collection of the debtors book.
Application for reinstatement of the listing of the NSI shares will be made
to the Listings Division as soon as the above issues are satisfactorily
resolved.
At that time a further detailed announcement will be made to shareholders.
Sponsor
The Janus Corporation (Pty) Ltd
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