Winding up of subsidiary
Introduction
ELB shareholders are referred to the interim report of the Company published on
26 March 2003, which stated that Safbin Systems (Proprietary) Limited ("Safbin")
had not met expectations, and that the shareholders of Safbin were in the
process of making a decision as to the future of the business. ELB shareholders
are advised that the shareholders of Safbin have applied to court for the
provisional winding up of Safbin ("the winding up"), which winding up order was
granted on Tuesday, 20 May 2003.
ELB holds 50% of the issued share capital of Safbin.
Financial effects of the winding up
The pro forma financial effects of the winding up on ELB"s headline earnings per
share for the six months ended 31 December 2002 are shown below. The winding up
is not expected to have a material effect on ELB"s consolidated net asset value
per share, as the Company holds adequate provisions against its exposure to
Safbin.
Before After % change
Headline earnings per
share (cents) 32,0 57,9 80,9
The pro forma financial effects have been calculated based on the assumption
that the winding up had been in effect for the entire six month period ended 31
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