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Corpcapital Limited
(Registration No. 1983/011384/06)
(a company incorporated in South Africa)
(the "company" or "Corpcapital")
Share Code: CPA
ISIN: ZAE 000034260
Strategy to unlock value for shareholders
1. In its cautionary announcement of 19 February 2003, the company stated that
its board was considering how best to unlock for shareholders the value in the
company.
2. Since inception in 1996, the company has grown its net asset value per
share at 52% per annum compounded. As Corpcapital`s balance sheet is primarily
invested in private equity, it is rated as an investment company, even though it
derives significant income from its non-investment businesses, in advisory,
trading and property asset management activities. In markets worldwide,
investment companies generally trade at a discount to net asset value. This
discount is exacerbated by market conditions affecting small capitalisation
companies.
3. In these circumstances, the board does not expect the value of the
company`s underlying assets and its management`s ability to continue growing
these assets to be reflected in the company`s share price, unless there is a
change in the company`s strategy. For this reason the board has resolved to
return capital to shareholders following a process of responsible, measured and
optimal realisation or distribution of the company`s investments. As a result,
the company will curtail new investments. The company will continue to grow and
support its income producing non-investment businesses.
4. A committee of the board has been established to implement the board`s
decision. The non-executive members of the committee are Doug Brooking, who
chairs it, and Tom Wixley.
5. The company intends to deliver value into shareholders` hands, without
impairing its businesses and its investments. In implementing this:
5.1 the company will provide capital as appropriate for the continued growth of
its income producing non-investment businesses;
5.2 the company will continue to manage and add value to its investments;
5.3 the company will maintain high levels of liquidity while reducing corporate
overheads; and
5.4 the board will have regard to the interests of all stakeholders in the
company.
6. Shareholders will be kept informed of progress in implementing the strategy
and on the future direction of the company.
7. The cautionary announcement of 19 February 2003 is withdrawn.
The Board of Directors
Corpcapital Limited
28 February 2003
Joint Sponsors
Corpcapital Corporate Finance PricewaterhouseCoopers
Corporate Finance
(Proprietary) Limited
Date: 28/02/2003 02:00:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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