IST Group Limited
Press Release
Pretoria, 1 March - The IST group announced today that it would issue
options for 11 million ordinary shares to the new empowerment company AKA
Capital. As reported at the time, IST last year repurchased 11 million of
its shares on the open market with a view to such a transaction.
When IST was listed on the JSE in 1998, the empowerment company Co-ordinated
Network Investments (CNI), funded by Gensec-NSA, held 29% of its issued
share capital. The funding arrangement matured in December last year and
control of CNI is reverting to Gensec-NSA. In terms of the new agreement,
AKA Capital - formed by key figures in CNI - will acquire the voting rights
to CNI's stake in IST, which now represents 32% of IST's issued share
capital.
"It is one of IST's key strategic objectives to have a meaningful
empowerment presence in our shareholder base. We believe the new
relationship with AKA Capital will secure and enhance that, particularly as
AKA Capital will be an active partner, providing IST with certain services
as well as access to its wide-ranging business and information networks,"
said IST chief executive Harry Coetzee.
The option agreement, which is still subject to approval by shareholders and
the regulatory authorities, sets the strike price at 90 cents per ordinary
IST share, a premium of 4.4 cents or 5.1% on the 30-day weighted average
traded share price up to the commencement of the option agreement, being 1
March 2002. The options are exercisable in three tranches between 1 March
2003 and 28 February 2006.
Issued by du Plessis Associates on behalf of IST Group.
dPA contact:Kathy du Plessis on tel:011-728-4701, fax:011-728 2547,
mobile:083 266 5847or e-mail: ist@dpapr.com
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