| Tue 5 Sep 2023, 15:48 | | SALUNGANO GROUP LIMITED - Update on the Voluntary Business Rescue Process of a Subsidiary and Appointment of Chief Restructuring Officer |
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Update on the Voluntary Business Rescue Process of a Subsidiary and Appointment of Chief Restructuring Officer
SALUNGANO GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: SLG ISIN: ZAE000306890
(“Salungano Group” or “the Company”)
UPDATE ON THE VOLUNTARY BUSINESS RESCUE PROCESS OF A WHOLLY-OWNED
SUBSIDIARY AND APPOINTMENT OF CHIEF RESTRUCTURING OFFICER
Shareholders are referred to the cautionary announcement in relation to the business rescue of a wholly-owned
subsidiary of the Company, Wescoal Mining Proprietary Limited (“Wescoal Mining”) released on SENS on
25 August 2023 (“Announcement”), advising shareholders, inter alia, that a voluntary business rescue
process of Wescoal Mining, based on a board resolution in terms of Section 129(1) of the Companies Act,
2008 (Act 71 of 2008), as amended (“Companies Act”), would ensue.
Subsequent to the Announcement, the voluntary business rescue application was duly registered at the
Companies and Intellectual Property Commission (“CIPC”), with the date of commencement of business
rescue proceedings recorded as 25 August 2023. The successful appointment of three senior business rescue
practitioners at the CIPC followed on 28 August 2023, and the first meeting of creditors of Wescoal Mining (in
business rescue) is planned for 11 September 2023.
Shareholders will be updated on the Wescoal Mining business rescue process as further material information
becomes available, and are reminded to continue to exercise caution when trading in Salungano Group shares
until a further announcement in this regard is made.
Shareholders should note that Wescoal Mining (comprising the Elandspruit and Khanyisa operations) does not
represent the main revenue-generating operations of the Salungano Group of companies (“the Group”). The
Group’s major operation at Moabsvelden Colliery, supplying coal to Eskom in terms of a long-term coal supply
agreement under the subsidiary, Neosho Trading 86 Proprietary Limited, remains uninterrupted and
sustainable.
Shareholders are advised that the board of directors of Salungano Group (“the Board”) has appointed a Chief
Restructuring Officer, Mr Stefan Smyth, Managing Director of Kroll South Africa Proprietary Limited, in a non-
fiduciary capacity. Mr Smyth and his team of experienced restructuring experts will serve as lead Independent
Financial Advisors to advise and guide the Board to successfully restructure and refinance the affairs of the
Salungano Group as soon as possible.
Shareholders will be updated on the lender negotiation process in subsequent announcements.
Johannesburg
5 September 2023
Sponsor
Merchantec Capital
Date: 05-09-2023 03:48:00
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