Reasons to reject the attempted putsch at African Media Entertainment Limited
African Media Entertainment Limited
A consortium of shareholders has requisitioned an extraordinary meeting at the
Dome, North Riding, Randburg at 09h00 on Friday August 23.
The resolutions proposed by the consortium are to remove four African Media
Entertainment directors and to replace them with three directors of the
requisitioners` choice. This will have the effect of a change of control of the
board.
Shareholders are urged to reject the proposals for the following reasons:
1. Mr David Dison, founder and former vice chairman of the company, acts as
spokesperson for the consortium and is its prime mover. You, as a shareholder,
are being asked to place the company once more under the control of the same
management team, which put the company in its present unprofitable, over-geared
predicament.
2. The original management`s vision and strategy did not work, resulting in
losses, excessive debt and the destruction of tens of millions of rands of
shareholder value.
3. The consortium`s claimed reasons for removal of four members of the existing
board are incorrect, unjustified and mendacious. It simply wants control of the
company.
4. Current management has been successful in realising assets and upon
conclusion of present initiatives, total debt should be reduced to R8,5-million
from R80-million two years ago.
5. Removal of existing directors may prejudice a current R25-million sale of an
asset, for which heads of agreement have been signed.
6. Directors representing Worldwide African Investment Holdings are likely to
resign if the consortium succeeds in its endeavours and loan creditors are
likely to insist on summary repayment of loans, placing the future of the
company in jeopardy.
7. AME`s empowerment credentials, and, consequently, its mooted future in radio
will fall into question if Worldwide directors step down. This is because of
ICASA`s strictures on black empowerment.
For a full exposition of the history and context of the arguments, please see
the directors` full rebuttal on SENS or www.meropa.co.za or phone Nicola
Wilson 011-772-1000.
African Media Entertainment Limited, Corner Olievenhout Ave and Northumberland
Rd, North Riding, 2162
Date: 25/07/2002 03:14:43 PM Produced by the JSE SENS Department
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