|
ENTERPRISE RISK MANAGEMENT LIMITED - NOTIFICATION OF OUTCOME OF ARBITRATION
PROCEEDINGS
ENTERPRISE RISK MANAGEMENT LIMITED
(incorporated in the Republic of South Africa)
(registration number : 1995/001603/06)
(JSE Code: ERM ISIN Code: ZAE000037701)
(`the Company`)
NOTIFICATION OF OUTCOME OF ARBITRATION PROCEEDINGS
1 INTRODUCTION
1.1 As shareholders are aware, the Company has been involved in
arbitration proceedings (`the arbitration`) with the City of
Johannesburg (`the City`).
1.2 The Company wishes to advise shareholders that at 17:00 on Wednesday,
28 July 2004, the Company received formal notification from the
arbitrator of his award in respect of the arbitration (`arbitration
award`).
2. ARBITRATION AWARD
2.1 The Company and its legal advisors are currently examining the
arbitration award, the summarized result of which is as follows -
2.1.1 in respect of the claim by the Company against the City relating
to the restructuring of loans to the City by the Development Bank
of South Africa, the City is obliged to pay the Company the sum
of R19 143 137,92 plus VAT and interest thereon at the rate of
18% per annum, calculated from 18 February 2002 to date of
payment thereof;
2.1.2 the claim by the Company against the City relating to services
rendered by the Company for Liquidity Risk Management in the
amount of R19 019 442,22 plus VAT thereon, was dismissed;
2.1.3 the counterclaim by the City against the Company for amounts
already paid by the City in relation to services rendered by the
Company for Liquidity Risk Management, was dismissed;
2.1.4 in respect of the counterclaim by the City against the Company
for repayment of amounts paid by the City to the Company in
relation to services rendered by the Company pertaining to the
General Insurance Fund of the City, the Company is obliged to pay
the City the sum of R13 539 392,96 plus interest thereon at the
rate of 15,5% per annum, calculated from 9 January 2002 to date
of payment thereof;
2.1.2 in respect of the costs of the arbitration, the net effect of the
arbitration award is that neither party will be obliged to pay
the other party any amount; and
2.1.6 the net result of the arbitration award is that the City is
obliged to pay the Company the sum of approximately R12 500 000
including interest thereon, calculated up to 30 July 2004.
2.2 There are three further claims by the Company against the City
totalling R1 854 519,87 plus VAT and interest thereon, calculated at
the rate of 18% per annum as well as a counterclaim by the City
against the Company in an amount of R257 630,90, all of which remain
undetermined at this stage.
2.3 The Company is currently investigating the possible recovery of taxes
paid by it to the South African Revenue Service in an amount of
approximately R8 600 000 in relation to the above.
2.4 The effect of the arbitration award is to reduce the Company`s Net
Asset Value (`NAV`) by approximately 30 cents per ordinary share. The
NAV per ordinary share as at 29 February 2004 was 138,59 cents. The
calculation of the aforesaid effect on the NAV excludes the amounts
referred to in paragraphs 2.2 and 2.3 above.
3. LISTING ON THE JSE SECURITIES EXCHANGE SOUTH AFRICA
The Company has been informed by the JSE Securities Exchange South Africa
(`JSE`), that the continued listing of the Company`s shares on the JSE will
be reviewed on 30 September 2004. The Company has undertaken to furnish the
JSE with a business plan in relation to the future business of the Company
on or before 30 September 2004.
4. FURTHER ANNOUNCEMENT
A further announcement will be made to shareholders once the Company has
had an opportunity to consider its position.
Johannesburg
29 July 2004
Sponsor Attorneys
Exchange Sponsors Werksmans Inc.
Date: 29/07/2004 09:53:38 AM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
