MGX - Press Release: MGX Rationalisation Continues With Sale Of Enterprise
Solutions Assets
MGX Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1983/012697/06)
Share Code: MGX
ISIN: ZAE000009262
"MGX" or "the Company"
For further information call:
Peter Flack on 082 800 4291 or
Alastair Moffat on (011) 458 6780
MGX RATIONALISATION CONTINUES WITH SALE OF ENTERPRISE SOLUTIONS ASSETS
Johannesburg, 13 May 2003 - MGX has announced that it has finalised the sale,
subject to various approvals, of the assets and some liabilities of subsidiary
Enterprise Solutions as part of the group"s process of restructuring and debt
reduction.
In terms of the agreement, Enterprise Solutions will sell these assets and
liabilities as a going concern to a special purpose vehicle owned by senior
members of the Enterprise Solutions management team and black economic
empowerment interests for R19 million in cash and the face values of the
company"s liabilities and trade creditors. MGX will use the R19 million to
reduce its debt.
MGX recently reported the sale of its interests in cdp Africa and
enTechnologies, and said it had reached agreements in principle to sell Business
Continuity Solutions and its 50% stake in Drive Control Corporation, as well as
the business of Enterprise Solutions.
Executive chairman Peter Flack noted at the time that the sale of these assets
would still not reduce debt at the centre to a bearable level, and that the
proposed rebuilding of MGX into a smaller but sustainably profitable business
would require the restructuring of its debt. Proposals in this regard are still
being considered by the group"s bankers.
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.
DISCLAIMER: This news release contains forward looking statements which are
subject to risks, uncertainties and other factors which could cause actual
results to differ materially from those stated in such statements. As a result
of these and other factors, the company may experience material fluctuations in
future operating results on a quarterly or annual basis, which could materially
and adversely affect its business, financial condition, operating results and
stock price.
Date: 16/05/2003 07:28:15 AM Supplied by www.sharenet.co.za
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