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With New Alliance Between Wiphold And Old Mutual.
Women Investment Portfolio Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/001291/06)
Share code: WPH ISIN: ZAE000017752
("WIPHOLD" or "the Company")
MORE MUSCLE TO WOMEN"S EMPOWERMENT WITH NEW ALLIANCE BETWEEN WIPHOLD AND OLD
MUTUAL.
Johannesburg. 10/03/03. WIPHOLD, the first women"s empowerment group to list on
the JSE Securities Exchange South Africa, is set for a total makeover following
a deal with Old Mutual (South Africa) which will see the company restructuring
and expanding its role as a fully-fledged financial services group.
In a move described by WIPHOLD CEO Louisa Mojela as "a milestone in achieving
our original vision for black and women"s empowerment", shareholders today
approved a bid by a consortium to buy out the minority shareholders and delist
WIPHOLD from the JSE Securities Exchange.
The consortium comprises WIPHOLD executives and management, Old Mutual, the
WIPHOLD Trust and a new NGO Trust.
"We will now be able to significantly improve the company"s black and women
economic empowerment ownership at shareholder level and at employee level, based
on direct economic empowerment participation," said Mojela. "This will also
strengthen our position for future business activities in a tough market."
For a 32,5% stake in the company going forward, Old Mutual will contribute
equity funding of R6,5 million, and provide working capital facility of R25
million and an investment facility of R40 million.
Chief Executive of subsidiary Wipcapital, Gloria Serobe, welcomed the new
partnership with Old Mutual, saying the funding and opportunity to leverage
overlapping skills should enhance deal-flow opportunities while simultaneously
achieving alignment of shareholder interests.
Roddy Sparks, Managing Director of Old Mutual (South Africa), said the deal is a
good long term strategic investment for Old Mutual. "We are very excited about
having a closer working relationship with WIPHOLD, which has proven itself to
have great strengths at a time when the local financial services environment has
been exceptionally challenging for small players without access to strong
balance sheets and consistent deal flows.
"This transaction ensures that WIPHOLD is a company with really good future
prospects," he said. "It also represents a very important milestone in Old
Mutual"s black economic empowerment programme, one of the aims of which is to
consistently promote BEE through our investment portfolio."
He added that deals like this provide an answer to the call to corporate action
sounded by President Mbeki in his State of the Nation address.
A number of small cap companies have disappeared from the JSE Securities
Exchange"s boards as a result of poor market sentiment that have seen share
prices trading at a discount to underlying net asset value, poor liquidity in
the tradability of their shares, and insufficient direct economic interest in
companies held by black economic empowerment persons and entities.
The scheme of arrangement remains subject to approval from the Supreme Court.
Issued by:Trish Downing
Old Mutual (SA) Corporate Communications
Tel: 021- 509-0125 Fax: 021- 509-3377
email: tdowning@oldmutual.com
Nombini Mehlomakulu
WIPHOLD
Tel: 011 715 3568 Fax: 011 728 8869
Email:nombinim@Wipcapital.com
Contact: Roddy Sparks
Old Mutual South Africa
rsparks@oldmutual.com
Gloria Serobe Louisa Mojela
Wipcapital WIPHOLD
gserobe@wipcapital.com lmojela@wiphold.com
Tel: 011 715-3615 Fax: 011 715-3612
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