Tigon Limited
Press Release
Financial services group, Tigon, has acquired 67% of the shares and loan
accounts in Saampro (Pty) Ltd for an undisclosed cash sum, with the
remaining shares ultimately vesting in the sound key management of Saampro.
Saampro is a micro-lending and term financing company, formerly held in the
Saambou stable. The Saambou shareholding has been acquired as a result of
the incapacitation and default on the part of Saambou, which triggered a
compulsory sale mechanism in the Saampro shareholders' agreement. Since
being placed in curatorship, Saambou has failed to meet its obligations both
to provide finance and to pay its creditors without deferral, which entitled
the remaining shareholders in Saampro to acquire Saambou's shares.
The Kroonstad-based company grew out of a cash loans business and has total
collectibles of R404 million. Its core business is as a provider of
finance, the majority of which is in short-term micro-loans. It also
supplies short and long-term insurance products nationally through its
subsidiary, Saampro Easy Surance.
The acquisition will bring a new dimension to Tigon's financial services.
Tigon believes that there will be considerable opportunities for business
between Saampro and other distribution-related companies in the Tigon group,
as well as with ShawCell, a company in which Tigon holds a significant
stake. ShawCell, which is neither an associate nor a subsidiary of Tigon,
has a general merchandise division supplying mainly electrical goods and
appliances to over 1 000 member dealers. It is envisaged that Tigon's
alliance with Saampro will assist ShawCell members to provide micro-lending
facilities to their customers.
"Micro-lending is needed in South Africa," says Tigon managing director Gary
Porritt. "We can take a leaf out of India's book where they have the most
efficient, effective and regulated micro-lending industry in the world.
There is no reason why South Africa should not have the same".
ends
ISSUED FOR : Tigon Limited
CONTACT : Gary Porritt Tel : (033) 394 2854
FAX NO: : (033) 394 2218 or (011) 440 5642
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart (011) 325 4195 / 083 443 6399
FAX NO : (011) 325-4199
E-MAIL : Tish@tspr.co.za
DATE : 9 April, 2002
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