Southern Africa (Proprietary) Limited ("Commerce Centre") and withdrawal of
cautionary announcement
DETACENTRIX HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/006413/06)
Share code : DCT
ISIN code : ZAE000016051
("Datacentrix" or "the company")
Announcement regarding Commerce Centre of Southern Africa (Proprietary)
Limited ("Commerce Centre") and withdrawal of cautionary announcement
Further to the cautionary announcements dated 10 January 2002 and 22
February 2002, shareholders are advised that Datacentrix has reached
agreement with the minority shareholder of its 70% held subsidiary, Commerce
Centre, and the technology vendors to Commerce Centre.
In terms of the agreements Datacentrix has, for a total consideration of
R2.2 million:
acquired the remaining 30% of Commerce Centre held by ParaNet LLC;
acquired the ParaNet LLC shareholders' loan of R3,3 million; and
reached agreement with Commerce Centre's technology vendors that Commerce
Centre will be released from all outstanding amounts and has no future
liabilities to the vendors.
The above transactions were required to give final effect to Commerce
Centre's exit from all loss incurring initiatives including the FMCG
national product data catalogue. Commerce Centre, whose name will be changed
to reflect the new shareholding, will continue to represent international
software vendors on a representation model. The effective date of the above
transactions is 28 February 2002.
Commerce Centre's financial results for the year ended 28 February 2002 will
be included in the consolidated financial results of Datacentrix for the
year ended 28 February 2002. It is anticipated that the trading losses
arising from Commerce Centre, attributable to Datacentrix, for the year
ended 28 February 2002 will amount to no more than the budgeted loss of R5
million and that the accumulated losses of this venture have been contained
to the initial investment. The detailed financial effects relating to
Commerce Centre will be provided in the Datacentrix annual results to be
published on 23 April 2002.
The directors of the company consider that the above transactions will be
positive for the company and its shareholders. Commerce Centre incurred
significant losses during the last two years and, with effect from 1 March
2002, it is expected that Commerce Centre will have no further negative
impact on the financial results of Datacentrix.
Withdrawal of cautionary announcement
Shareholders are accordingly advised that caution is no longer required when
dealing in their Datacentrix shares.
Pretoria
5 April 2002
Corporate adviser and sponsor:
Barnard Jacobs Mellet Corporate Finance (Proprietary) Limited
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