DNA Supply Chain Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004875/06)
Share code: DNA ISIN: ZAE000022794
("DNA")
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement published on 7 March 2002, Standard
Corporate and Merchant Bank is authorised to announce that DNA has entered
into negotiations with Letsema Holdings (Proprietary) Limited ("Letsema"),
whereby a broad based Black Empowerment Consortium ("BEC") will become the
controlling shareholder of DNA Micor (previously trading as the Micor
Group), the freight logistics and bulk handling operations of DNA ("the
proposed transaction").
Letsema, a predominantly black-owned and managed company that focuses on
partnering organisations seeking to transform themselves in South Africa,
has been DNA's Black Economic Empowerment ("BEE") partner and a shareholder
in DNA since its listing in 1999. Through the use of voting, nil-coupon,
redeemable convertible preference shares, DNA created an opportunity for
Letsema to have an influence on its operations, and to use that position to
create value for all stakeholders.
Letsema was tasked with the responsibility of ensuring that transformation
took place across all levels within DNA. In addition to overseeing DNA's
empowerment process, Letsema also assisted DNA in the:
development of capabilities in technology implementation and supply chain
consulting;
design of a business model to support large scale engagements; and
facilitation of strategic partnerships.
The BEC, which will include Letsema and other BEE shareholders (selected
based on their strategic relevance and value they are able to add to DNA
Micor) will be issued with voting, nil-coupon, redeemable convertible
preference shares ("the preference shares") capable of exercising control of
51% of the votes in DNA Micor. DNA will retain all the existing DNA Micor
ordinary shares which, following the successful implementation of the
proposed transaction, will carry 49% of the voting rights in DNA Micor. The
preference shares will be converted into new DNA Micor ordinary shares on
achievement by the BEC of pre-determined value performance criteria.
The successful implementation of the proposed transaction may have a
material effect on the price of DNA's shares. Accordingly, DNA shareholders
are advised to exercise caution when dealing in their DNA shares until a
further detailed announcement is made.
Sandton
18 March 2002
Merchant bank and sponsor
Standard Corporate and Merchant Bank
(A division of The Standard Bank of South Africa Limited)
(Registration number 1962/000738/06)
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