Kolosus Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1978/000181/06)
Share code: KOS ISIN: ZAE000008504
("Kolosus" or "the Company")
Shareholders are advised that judgement in the matter between the liquidator of
Silveroak Industries Limited ("the Liquidator") and Kolosus, a matter
originating from a legal dispute between Seton Company USA, and Silveroak
Industries Limited ("Silveroak"), which was heard in the High Court in Pretoria
late in 2002 was issued earlier today. The judgement results in an order, which
is unfavourable towards Kolosus.
In summary, the order involves:
z the declaration that the 1996 share capital reduction of Silveroak was
unlawful and is declared voidable and is set aside;
z that Kolosus is ordered to make payment to the Liquidator of the proceeds
of the share capital reduction, namely an amount of R 88 496 000;
z that the LEK agreements, entered into are set aside and the assets
alienated in terms of the LEK2 agreement be returned to the Liquidator, in as
much as Kolosus may be able to do so;
z that the total shareholding in Silveroak (in liquidation), previously a
wholly owned subsidiary of Kolosus, acquired by LEK Holdings Limited from
Kolosus in terms of the LEK 1 agreement be returned to Kolosus; and
z that Kolosus is ordered to pay the costs of the application.
The board of Kolosus is currently taking legal advice from their legal
representatives and will advise shareholders of further developments in due
course. Kolosus intends to appeal against this judgement, should leave to
appeal be granted. This procedure will stay this judgement pending the outcome
of the appeal process.
Daun & Cie. Aktiengesellschaft, which has recently entered into an agreement to
acquire 90.76% of the shares in Kolosus, in terms of the announcement dated 29
January 2003, has indicated that, pending the fulfilment of the conditions
precedent, the judgement does not influence its intention to continue with the
transaction.
Shareholders should appreciate that this order is against Kolosus Holdings
Limited itself, and not against the operating subsidiaries of Kolosus.
Due to the significance of this event, shareholders are advised to exercise
caution in the trading of their shares in Kolosus.
Pretoria
7 February 2003
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 07/02/2003 04:53:00 PM Produced by the JSE SENS Department
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