SAGE GROUP LIMITED
("Sage Group") or ("the Group")
(Incorporated in the Republic of South Africa)
(Registration Number 1970/010541/06)
(Share code SGG ISIN ZAE000006623)
INTERNATIONAL OPERATIONS
On 17 December 2002 shareholders were informed of plans to suspend the Group`s
international marketing and underwriting activities in the United States and
Bermuda with effect from 1 January 2003 if additional sources of capital
necessary to support sales momentum and infrastructure were not secured by that
date.
Interest has since been expressed by certain major financial institutional
groups regarding the acquisition or investment into one or both the operations
and for additional reinsurance funding for the ongoing operations of the Group`s
offshore activities based in Bermuda.
Despite the possible potential presented by these ongoing capital raising
negotiations it has been decided to confirm the closure to new business of the
USA operations with effect from 1 January 2003. If negotiations are
successfully concluded at an early stage consideration could be given to
resuming these new business activities. Administration capabilities have been
retained in the United States to service existing business.
In the case of the Bermudan operations negotiations for additional reinsurance
facilities are in progress with a leading insurance group which, if successfully
concluded, will ensure viability and continuity. Negotiations will also
continue to provide additional permanent capital for the company in order to
enable it to be more self sufficient with a lower amount of reinsurance. Under
the circumstances of the ongoing funding resources which the new reinsurance
arrangements are anticipated to provide, the Bermudan operations will remain
fully operational and open for new business until further notice.
Further announcements are expected to be made in connection with the Bermudan
operations during the next two weeks.
By order of the Board
C S Cant - Secretary
3 January 2003
Sponsor
ABSA Corporate & Merchant Bank
Corporate Finance
(Registration number 1986/004794/06)
Date: 03/01/2003 08:03:00 AM Produced by the JSE SENS Department
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