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MGX -
MGX Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1983/012697/06)
("MGX" or "the Company")
Share code: MGX
ISIN: ZAE000009262
SUSPENSION OF LISTING OF THE ORDINARY SHARES OF MGX HOLDINGS LIMITED
INTRODUCTION
On 3 October 2003, MGX issued a circular providing shareholders with details of
the disposal of four of its operating subsidiaries for consideration at a
general meeting to be held on 23 October 2003. In terms of the Listings
Requirements of the JSE Securities Exchange South Africa ("JSE"), MGX was
obliged to publish a working capital statement in this circular confirming the
adequacy of its working capital until a stated date. In this context, MGX
provided a working capital adequacy statement in the circular advising
shareholders that the Company"s working capital would be adequate until 10
October 2003. On 13 October 2003, MGX released an announcement on SENS advising
its shareholders that:
- the board of directors of MGX ("the board") was of the opinion that the
ordinary share capital, resources and working capital of the Company would, in
the ordinary course of business, be adequate until 17 October 2003; and
- negotiations with MGX"s capital providers relating to the debt refinancing and
the raising of additional facilities were still in progress.
The Company is still in negotiations with its capital providers for a
refinancing of its debt obligations. Accordingly, although the Company has
sufficient facilities for its immediate working capital requirements and is not
in a position relative to its capital providers materially different to that
over the past months, it is dependent on the successful outcome of its
negotiations with its capital providers and is therefore not in a position to
confirm its working capital adequacy for more than a week at a time.
MGX is of the opinion that its negotiations with its capital providers will be
successful and that the Company"s working capital requirements will continue to
be met. However, MGX"s interactions with its stakeholders over the past two
weeks have indicated that weekly working capital adequacy statements are being
misinterpreted. Therefore, the board deemed it preferable to request the JSE to
suspend the listing of the Company"s share until final and binding unconditional
debt refinancing agreements have been concluded and support from the majority of
MGX"s shareholders has been secured. Once the debt refinancing agreements have
been concluded and support from the majority of MGX"s shareholders has been
secured, MGX will be in a position to issue a positive working capital adequacy
statement for the remainder of the current financial year.
CONCLUSION
Given that weekly working capital adequacy statements are being misinterpreted
and that the negotiations surrounding the debt refinancing and the restructuring
of MGX have not been finalised, the board deemed it prudent to request that the
Listings Committee of the JSE suspend the listing of the MGX share on the JSE.
The JSE has advised MGX that the listing of the MGX share will be suspended
before trading commences today.
Sandton
20 October 2003
Sponsor
Standard Corporate and Merchant Bank
(A division of The Standard Bank of South Africa Limited)
(Registration number 1962/000738/06)
Date: 20/10/2003 08:50:04 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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