MGX RESTRUCTURES BOARD AND INITIATES STRATEGY REVI
MGX RESTRUCTURES BOARD AND INITIATES STRATEGY REVIEW
MGX Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1983/012697/06)
Share code: MGX
ISIN: ZAE000009262
("MGX" or "the Company")
MGX RESTRUCTURES BOARD AND INITIATES STRATEGY REVIEW
Johannesburg, 27 November - MGX Holdings today announced that it had appointed
Peter Flack as executive chairman and interim chief executive to head a
strategic review of the business. FRM Strategies, of which Flack is a
principal, has been retained as an advisor to the company.
Also joining the board are Brait group chief executive Antony Ball and Roy
Midlane, MGX`s recently appointed financial director designate. Chief executive
Chris Hills has taken an extended leave of absence on health grounds, and
business development and strategy director Aletha Ling has resigned.
Patrick Landey, who has acted as chairman since the departure of Ronnie Price in
August this year, said the FRM and board appointments were designed to resolve a
number of issues, notably the future strategic direction of the group, its high
level of debt, and the continuing uncertainty around the acquisition of EC-Hold.
Peter Flack said FRM would immediately initiate a business review of MGX,
following which a strategy and action plan for the group as well as its
operations would be developed. This process is scheduled to take three months.
It was likely, however, that shareholders would be given a progress report and
trading update before the end of January.
MGX today also issued a profit warning, saying its results for the six months to
December 2002 would be significantly worse than those for the previous half-
year, but that it still expected to be profitable for the full financial year to
June 2003. It attributed its current performance decline to difficult trading
conditions; the operational disruption caused by the aborted sale of subsidiary
Software Futures to Paracon; once-off restructuring and retrenchment costs; and
increased financing costs due to higher debt and interest rate levels.
Issued by du Plessis Associates on behalf of MGX Holdings Limited. dPA contact
Kathy du Plessis on Tel: 011-728 4701, mobile: 083 266 5847 or e-mail
gen@dpapr.com
For further information call
Peter Flack on 082-800-4291 or
Patrick Landey on 083-251-1992
Date: 27/11/2002 03:44:15 PM Produced by the JSE SENS Department
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