Update regarding the restructuring of Glotec, the voluntary winding up of
certain subsidiaries and further cautionary announcement
Further to the announcement on 23 June 2003 ("the announcement"), the board of
Glotec wishes to advise shareholders of the following developments and actions:
As indicated in the announcement, the board had received an indicative offer
from a consortium led by the former CEO Mr Raymond Leonard ("the consortium") to
acquire the various subsidiary companies which comprised the Banking division
and certain businesses of the Professional Solutions division. The Board and the
consortium (collectively "the parties") have failed to reach agreement on terms
acceptable to the parties regarding certain parts of the Banking division, in
particular the following subsidiaries: Temenos Southern Africa (Pty) Limited and
Global Technology EBS (Pty) Limited ("affected subsidiaries"). Negotiations are
continuing between the parties regarding the balance of the businesses in the
Banking division and those affected businesses in the Professional Services
division. A further announcement will be made in due course in this regard.
Due to the continued distress and funding requirements which the affected
subsidiaries are placing on the Glotec Group, and the inability to sell these
affected subsidiaries, the respective Boards of these affected subsidiaries have
resolved to apply for the voluntary winding up of these affected subsidiaries.
The Board is currently investigating the financial effects of the voluntary
windings up on the historical financial information of Glotec. If necessary,
shareholders will be advised of these financial effects.
This consolidation and restructuring process which Glotec is currently
undergoing, will allow the Company to focus on and further enhance its market
position in the areas of Business Intelligence, Insurance Systems and the
remaining part of Professional Solutions, namely Manufacturing and Distribution
Systems.
FURTHER CAUTIONARY ANNOUNCEMENT
Glotec is still in discussions that may have a material effect on the price of
its securities. Shareholders are therefore advised to continue exercising
caution in dealing in the Company"s securities until a further announcement is
made.
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