Regal Treasury Bank Holdings Limited - Announcemen
Announcement to Shareholders
Shareholders are referred to the Company's announcement dated 26 November
2001 in which they were advised as to:
* the status of the dividend declared by the company on 30 April 2001;
* proposals to liquidate the balance of the assets of Regal Holdings in an
orderly fashion prior to the negotiation of a scheme of arrangement in terms
of Section 311 of the Companies Act, 1973 or a voluntary liquidation of the
Company;
* the status of proposals by the Curator to the depositors of Regal
Treasury Bank Limited ("Regal Bank") which were communicated in a letter
from the Curator dated 14 November 2001 which advised, inter alia, that
Investec Bank Limited ("Investec") had issued a letter of intent in terms of
which Investec will acquire the entire issued share capital and will take
over the remaining assets and liabilities of Regal Bank to be effected by
way of a Scheme of Arrangement in terms of Section 311 of the Companies Act.
The letter of intent provided that a final decision would be taken by 30
November 2001 on whether or not this arrangement is possible;
Shareholders were also advised that once finality had been reached in this
regard, a circular would be despatched to them containing further
information and convening a General Meeting to approve of the disposal of
the remaining assets and the de-listing of the Company from the JSE
Securities Exchange.
The Directors believe it is now necessary to provide shareholders with an
update as to the status of the negotiations and of progress to date in
realising the balance of the company's assets.
Realisations to date
The following assets have been realised:
* The Stone Manor properties in Rivonia have been disposed of by Regal
Treasury Property Investments (Pty) Ltd, a subsidiary of Regal Holdings, for
a total amount of R27,1 million and the proceeds, net of related costs, paid
to the Curator against loans received from the Bank;
* The business of Regal Insurance Brokers (Pty) Ltd has been disposed of
for a nominal amount;
* Regal Employee Benefits (Pty) Ltd has been sold, also for a nominal
amount;
* Regal Fund Managers (Pty) Ltd has been voluntarily liquidated;
* The various Regal Mutual Fund funds are in the process of being disposed
of to Investment Solutions Unit Trusts Limited and the resultant inflow will
be used to repay loans from Regal Bank to the holding company after an
orderly winding down of Regal Treasury Unit Trust Management Company Ltd;
* Negotiations are in progress based on a conditional offer to Chesvan
(Pty) Ltd from a financial institution for the sale of the property situated
at 93 Grayston Drive in Sandton. The proceeds, net of related costs, will
be paid to Regal Bank as the bond holder and sole creditor.
Update on proposed Scheme of Arrangement
As noted above, the details of the proposed Scheme of Arrangement with
Investec were expected to be finalised by 30 November 2001. The Curator has
advised the directors that he continues to negotiate with Investec and is
still considering the various options available to him which include, as an
alternative, the liquidation of Regal Bank.
It still remains the intention of the Board to try and realise sufficient
funds from the assets of the company to permit a voluntary liquidation of
the company or a possible scheme of arrangement in terms of Section 311.
Until such time as there is more clarity on material outstanding matters,
the shares of the company will continue to be suspended on the JSE.
11 February 2001
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Contact: D P Cohen 082 600 6007
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