FirstRand - Cautionary Announcement
FirstRand Limited
(Incorporated in the Republic of South Africa)
Registration number 1966/010753/06
Share code: FSR ISIN: ZAE000014973
(`FirstRand`)
Further cautionary announcement relating to FirstRand`s 10% Black Economic
Empowerment (`BEE`) transaction
Shareholders are referred to the cautionary announcement dated 4 November 2004
in which FirstRand outlined its proposed BEE transaction (the `BEE
transaction`). Subject to the fulfilment of certain conditions precedent, the
Kagiso Trust, Mineworkers Investment Trust, WDB Trust and the FirstRand
Empowerment Foundation, together with black South African FirstRand staff and
non-executive directors, will acquire 9,6% of FirstRand`s issued ordinary share
capital. An additional 0,4% of FirstRand`s issued ordinary share capital is
already held by black staff, bringing FirstRand`s total direct black ownership
to 10%.
The BEE transaction comprises two components, namely:
* the broad-based BEE groups referred to above which will collectively hold
6,5% of FirstRand`s issued ordinary share capital (`the third party BEE
component`); and
* black South African FirstRand staff, through staff trusts, and black non-
executive directors will hold in aggregate 3,5% of FirstRand`s issued ordinary
share capital (`the FirstRand staff BEE component`).
FirstRand is pleased to announce that the necessary commitments and approvals
from various financial institutions for the funding of the third party BEE
component have been secured. The drafting of the necessary legal agreements for
such funding has commenced.
FirstRand, through its subsidiary FirstRand Bank Limited, intends to fund the
FirstRand staff BEE component itself out of available resources. Accordingly,
the BEE transaction is likely to be implemented in the first quarter of 2005.
A detailed terms announcement will be published once the documentation relating
to the BEE transaction and the associated third party funding has been
finalised. This announcement will include an analysis of the economic
cost/dilution of the BEE transaction to FirstRand shareholders.
In the interim, shareholders are advised to continue to exercise caution when
dealing in their FirstRand shares until the announcement referred to above is
made.
Sandton
20 December 2004
Merchant bank and sponsor
RMB Corporate Finance
A division of FirstRand Bank Limited
Lead sponsor
PricewaterhouseCoopers
Corporate Finance (Pty) Ltd
(Registration number 1970/003711/07)
Financial adviser to Kagiso Trust, Mineworkers Investment Trust and WDB Trust
ROTHSCHILD
Date: 20/12/2004 10:01:32 AM Supplied by www.sharenet.co.za
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