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ABSA GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
("Absa")
Share code: ASA
ISIN: ZAE000013389
ABSA GROUP LIMITED`S SHAREHOLDING STRUCTURE
Absa Group Limited (Absa) welcomed today`s announcement by its major
shareholders that they have restructured the agreements between them in respect
of their interests in Absa.
The Universa shareholders - the Mine Pension Funds (MPFs) comprising the Mine
Employees Pension Fund and Sentinel Mining Industry Retirement Fund, as well as
Remgro subsidiary Financial Securities Limited (FSL) and Sage Group Limited -
and Sanlam Limited announced the revision of their shareholding agreements in
Absa. The Universa structure will be unbundled, while a new share pool agreement
between some of the Universa shareholders and Sanlam will come into effect.
Dr Danie Cronje, Absa`s chairman, welcomed the restructuring because it
addresses the uncertainty that has surrounded Absa`s shareholding structure for
some time as well as the fact that it will enhance liquidity and the free float.
Inadequate liquidity in the share and an inappropriately small free float
contributed to Absa`s exclusion from the influential Morgan Stanley Capital
Index (MSCI) last year. "The revised arrangement addresses these issues and
will provide an appropriate balance of stability for Absa and flexibility for
shareholders. Dr Cronj said. "We look forward to the continuing support of all
the parties who have been committed shareholders over many years," he said.
The agreement creates a new pooling arrangement between Sanlam, FSL and the MPFs
in respect of a stake of approximately 36% in Absa. The Universa shareholders
intend to unbundle the holding of Universa in Absa and have signed an agreement
to facilitate the proposed unbundling. The new shareholders agreement between
Sanlam, the MPFs and FSL will come into effect immediately.
Dr Cronje also welcomed assurances from Absa`s major shareholders that they
intend remaining committed investors in Absa. "Despite the announced changes we
have the certainty that the new partners in the pooling arrangement as well as
Sage remain serious investors in Absa." This was emphasised by Dr Leon Vermaak,
Sanlam`s chief executive officer: "The reduction of the current 46% shareholder
pool to 36% retains a group of committed anchor shareholders for Absa", he said.
Sage has elected to withdraw from the existing Absa shareholders agreement and
will not participate in the new shareholding pool. Sage has opted for the
absolute flexibility and liquidity it considers desirable for its ongoing direct
shareholder and policyholder investments in Absa shares. However, it anticipates
maintaining the excellent business relationship it has built up with Absa over
the last decade independently of its Absa shareholding. In its turn, Absa
continues to be a substantial shareholder in Sage and is represented on its
board.
"While Sage is no longer a member of the pool and will be able to sell its
shares, we intend retaining a significant Absa holding for some time to come,"
confirmed Sage chairman Louis Shill. Mr Shill said that Sage will also dispose
of any Absa shares in an orderly manner."
Dr Cronje emphasised that any disposal of Absa shares by the major shareholders
under the new agreement (whether in the pool or not) will be directed by
stipulations in the new agreement that will ensure orderly marketing of the
shares.
Further inquiries:
Dr Danie Cronje, Chairman, Absa Group Limited.
Telephone: (011) 350-4235.
Issued by:
Willie Roux, Group consultant: Investor Relations, Absa Group Limited.
Telephone: (011) 350-4061 or 082 453 5351.
Date: 20/08/2002 01:12:21 PM Produced by the JSE SENS Department
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