Velocity - Proposed Cash Distribution And Members`
Velocity - Proposed Cash Distribution And Members` Voluntary Winding-Up
VELOCITY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1972/008877/06)
Share code: VLY ISIN: ZAE000018156
("Velocity")
PROPOSED CASH DISTRIBUTION AND MEMBERS` VOLUNTARY WINDING-UP
The directors have resolved to recommend, subject to the passing and,
where applicable, registration of the requisite resolutions, that
Velocity be placed in liquidation by way of a members` voluntary winding-
up in accordance with sections 349 and 350 of the Companies Act (Act 61
of 1973), as amended) ("the liquidation").
The rationale for the liquidation is:
- whilst the company`s assets comprise interest bearing securities,
the directors have considered various alternatives regarding its future
strategic direction but, given current market conditions and volatility,
none were deemed appropriate; and
- the costs associated with maintaining a listing on the JSE, the
company`s historic low share trading volumes and absence of meaningful
corporate activity, render the continued listing and existence of the
company unwarranted.
In terms of the liquidation, Velocity will:
- subject to the passing of the requisite ordinary resolution and in
the course or in anticipation of the liquidation make a cash
distribution estimated at approximately 715 cents per share, the amount
of which will be confirmed in the press and on SENS; and
- terminate Velocity`s listing on the JSE Securities Exchange South
Africa ("the JSE").
A circular to Velocity shareholders incorporating a notice of general
meeting and containing details of the liquidation will, subject to the
approval of the JSE, be posted to shareholders shortly.
Johannesburg
18 July 2002
Investment bank and sponsor
PSG INVESTMENT BANK
Sponsor
PRICEWATERHOUSECOOPERS CORPORATE FINANCE (PTY) LIMITED
Attorneys
FLUXMAN RABINOWITZ-RAPHAELY WEINER INC.
Date: 18/07/2002 05:01:00 PM Produced by the JSE SENS Department
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