M CUBED HOLDINGS LIMITED - TERMINATION OF DISCUSSIONS WITH MOMENTUM GROUP
LIMITED AND
m Cubed Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/014568/06)
Share code: MCU ISIN: ZAE000033353
("m Cubed" or "the company")
TERMINATION OF DISCUSSIONS WITH MOMENTUM GROUP LIMITED AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Shareholders are referred to the m Cubed announcement of 1 December 2003
and the combined Momentum Group Limited ("Momentum") and m Cubed detailed
cautionary announcement of 15 December 2003, where shareholders were advised
of a proposed transaction with Momentum under terms of which Momentum was
seeking to acquire from m Cubed, subject to certain suspensive conditions,
certain businesses ("the asset management businesses") for a purchase
consideration of R175 million.
2. TERMINATION OF DISCUSSIONS
It was noted in the detailed cautionary announcement that the
transaction was, inter alia, subject to a due diligence investigation and
parties finalising agreements and negotiations to agree certain post-
implementation working relationships.
m Cubed, to a large extent, operates as an integrated entity and the
additional value of synergies and scale generated for m Cubed from the
combined businesses are substantial. The parties could not agree, inter alia,
on the extent and the value of certain post-implementation contractual
arrangements and the m Cubed board has therefore decided to decline the
Momentum offer.
m Cubed"s original strategy did not include partial deals, but the board
was prepared to consider approaches from credible suitors, provided that they
might prove to be clearly to the advantage of clients, shareholders and
staff. As agreement could not be reached, the board of m Cubed has decided to
return to their prior stated objective of implementing an empowerment
strategy, whereby a value-adding empowerment shareholder would obtain a
meaningful interest in the company.
3. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
As the discussions between the parties have been terminated,
shareholders are advised that caution is no longer required when dealing in
m Cubed shares on the JSE Securities Exchange South Africa.
Johannesburg
10 March 2004
Sponsor and corporate adviser to m Cubed
PSG CAPITAL
Date: 10/03/2004 05:03:13 PM Produced by the JSE SENS Department
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