Aspen Pharmacare Holdings Limited - Withdrawal of cautionary announcement
ASPEN PHARMACARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1985/002935/06)
Share code: APN ISIN: ZAE000023586
(`Aspen`)
Withdrawal of cautionary announcement
Aspen shareholders are referred to the cautionary announcements dated 6 May
2004, 24 June 2004, 18 August 2004, 5 October 2004 and 22 November 2004
(collectively `the cautionary announcements`) in terms of which Aspen
shareholders were advised that discussions in respect of a proposed Black
Economic Empowerment transaction (`the proposed transaction`) were in progress
which, if successfully concluded, could have a material effect on the price of
Aspen shares.
On 8 December 2004, the Department of Trade and Industry (`the DTI`) released
draft Codes of Good Practice on Broad Based Black Economic Empowerment (`the
Codes`) which are statements outlining the key principles underpinning Broad
Based Black Economic Empowerment (`BBBEE`). The Codes are open for public
comment for a period of sixty days. The purpose of the Codes are to assist and
advise both the public and private sectors in the implementation of the
objectives of the BBBEE Act, 2003. Private sector enterprises will be obliged
to consider the principles set out in the Codes, once finalised, when
implementing BEE initiatives.
In light of the aforegoing Aspen has suspended negotiations in respect of the
proposed transaction pending clarification of the implications of the Codes on
the assessment of Aspen`s BBBEE status. Thereafter Aspen will reassess the
appropriateness of the proposed transaction in achieving its BBBEE objectives.
Accordingly, as the negotiations referred to in the cautionary announcements
have been suspended, Aspen shareholders are no longer required to exercise
caution when dealing in their Aspen shares on the JSE Securities Exchange South
Africa.
Aspen remains committed to the principles of BBBEE. Aspen believes that a most
effective way to achieve BBBEE ownership is to empower its black staff by
promoting an environment where ownership of Aspen shares by employees is
encouraged. The Aspen board has approved in principle the establishment of a
Black Workers Trust and a Black Managers Share Incentive Trust in pursuit of
these objectives. It is anticipated that these initiatives will be finalised in
the first quarter of 2005.
Sponsor
Investec Bank Limited
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