Frontrange Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/009928/06)
("FrontRange")
Share code: FRO
ISIN: ZAE000035325
NEWS RELEASE
4 June 2003
FrontRange lifts stake in US subsidiary to 100%
FrontRange Solutions Inc., the United States-based subsidiary of JSE Securities
Exchange-listed FrontRange Limited, has bought back the remaining 4,8% stake
held in it by various minority shareholders for a total cost of $1,1-million
(R8,7-million), lifting FrontRange Limited"s ownership to 100%.
This transaction follows the 11% share buy-back in April 2003, when FrontRange
Solutions, Inc. bought back the shares held by Peregrine Systems, Inc. for $1,6-
million (R12,8-million). This took FrontRange Limited"s effective stake in
FrontRange Solutions, Inc. to above 90%, enabling it to make a mandatory offer
to the remaining 31 minority shareholders.
The law of the US State of Delaware, in which FrontRange Solutions Inc. is
registered, requires that such a mandatory offer be made at fair value, without
taking into account minority or liquidity discounts. Accordingly, the offer was
based on FrontRange Limited"s closing share price of 105 cents on 10 April 2003,
the day on which the offer was formulated. The offer was also based on the then
prevailing currency exchange rate of $1 = R7,78.
The buy-back was funded out of FrontRange Solutions Inc."s existing cash
reserves, which remain strong, and was effective 30 April 2003.
Says Dana Buys, chief executive of FrontRange Limited: "This buy-back represents
a further tangible step in FrontRange"s commitment to enhancing shareholder
value. Owning 100% of the US subsidiary enables us to simplify the structure of
the group and provides shareholders of FrontRange Limited with an undiluted and
clear line of sight to the performance of the core operating entity, FrontRange
Solutions Inc."
ENDS
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