Fedsure Holdings Limited
(Incorporated in the Republic of South Africa) (Registration number
1969/012384/06)
(Share code: FDS ISIN code: ZAE000002622) ("Fedsure")
Fedsure Holdings investor update and cautionary announcement
Shareholders are referred to the unbundling announcement of Fedsure dated 20
September 2001 ("unbundling announcement") in which Fedsure advised
shareholders that Investec Group Limited ("Investec") had intimated claims
against Fedsure totalling approximately R120 000 000.
Investec has now intimated that, including intimated claims against The
Fedsure Employees Share Incentive Scheme and the Fedsure Group Convertible
Debenture Scheme in respect of which it its alleged Fedsure may be liable,
its total intimated claims now exceed R400 000 000.
Discussions have been held with Investec in an attempt to resolve the
claims. These discussions have thus far been unsuccessful. The board of
Fedsure disputes the validity of all the claims and will defend all of them
should Investec institute legal proceedings. To date no legal proceedings of
any nature have been instituted by Investec. Should such proceedings be
instituted, this will result in a delay in the final unbundling by Fedsure
of Investec shares to shareholders. In addition, should Investec be
successful in any of its claims, the number of Investec shares finally
unbundled to Fedsure shareholders will be adversely affected.
Shareholders' attention is drawn to the other estimated liabilities and
contingent liabilities set out in the unbundling announcement. The board of
Fedsure remains of the view that these liabilities are unlikely to be
exceeded.
In light of the aforegoing, shareholders are advised to exercise caution
when dealing in Fedsure's securities until a further announcement is made.
For and on behalf of the Board
J A Barrow Johannesburg
Chairman 29 January 2002
Sponsor
Werksmans
Werksmans Sponsors (Proprietary) Limited
Registration number 2000/005164/07
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