MGX Holdings Limited - Update of Strategic Review
MGX Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1983/012697/06)
Share code: MGX
ISIN: ZAE000009262
("MGX" or "the Company")
PRESS RELEASE - UPDATE OF STRATEGIC REVIEW
Update on ongoing strategic review
In the strategic review announcement dated 29 January 2003, MGX shareholders
were advised that the board of MGX ("the board") intended to dispose of certain
operations to reduce the Group"s debt level, and to restructure the Company as a
smaller but sustainable and profitable business.
Disposals
Agreements in principle have now been reached regarding the sale of Business
Continuity Solutions (Proprietary) Limited and Enterprise Solutions
(Proprietary) Limited to their respective management teams, in both cases
supported by credible black economic empowerment partners. A detailed
announcement setting out the terms and conditions of these agreements will be
made once same have been concluded.
Black Economic Empowerment
Agreement in principle has also been reached with a prospective black economic
empowerment partner regarding its participation in Metrofile (Proprietary)
Limited and Software Futures (Proprietary) Limited. A further announcement will
be made in due course.
Refinancing of the Company
At the same time, satisfactory progress has been made in discussions with a
consortium of banks regarding the refinancing of the restructured Group.
Financial management
As part of the strategic review process initiated in November 2002, the group"s
financial management function has been strengthened and prudent accounting
policies and practices have been strictly applied. The audit committee of the
board is currently reviewing the interim results for the six months to 31
December 2002 in this context. It is intended to publish these results in the
latter half of April 2003.
Issued by du Plessis Associates on behalf of MGX Holdings Limited.
dPA contact Kathy du Plessis on Tel: 011-728 4701, mobile: 083 266 5847 or
e-mail gen@dpapr.com
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