Liberty Group Limited - Subordinated Unsecured Cal
Liberty Group Limited - Subordinated Unsecured Callable Bond Issue
Liberty Group Limited
(Registration number 1957/002788/06)
(Incorporated in the Republic of South Africa)
Registration number 1957/002788/06
Share Code: LGL
ISIN Code: ZAE000057360
(`Liberty Life`)
SUBORDINATED UNSECURED CALLABLE BOND ISSUE
Shareholders are referred to Liberty Life`s announcement on 19 May 2005
regarding its intention to issue subordinated unsecured callable bonds. Given
the increasing number of pension fund adjudication (PFA) rulings that are being
made against the life assurance industry, together with the negative publicity
surrounding those rulings, Liberty has decided not to proceed with the proposed
bond issue at this time.
The rationale for the issuing of a bond of this nature remains unchanged, which
is to diversify the funding costs of Liberty`s working capital. Liberty
continues to explore opportunities to lower its cost of capital, and the issuing
of debt remains core to this strategy.
The capital position of the group remains strong ensuring the security of
Liberty`s policyholders and shareholders.
Liberty is a key contributor to the life assurance industry`s initiatives to
review product offerings and the value proposition for policyholders in the
current lower interest rate environment. The acquisition of Capital Alliance is
part of Liberty`s ongoing efforts to reduce costs per policy mainly for the
benefit of policyholders. Liberty remains committed to its objectives in this
regard.
For further information, please contact:
Myles Ruck (CEO) 011-408 2001
Deon De Klerk (CFO) 011-408 2572
Stewart Rider (Group Finance & Investor Relations) 011-408 3260
This announcement is not for release in the United States, Japan, France, Canada
or Australia.
This announcement does not constitute an offer of securities for sale in the
United States. The securities referred to herein have not been and will not be
registered under the US Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an applicable
exemption from registration requirements. The company does not intend to offer
the securities for sale in the United States.
There shall not be any offer, solicitation or sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such jurisdiction.
Neither this announcement nor any copy hereof may be taken or transmitted into
the United States, Japan, France, Canada or Australia or distributed directly or
indirectly into the United States, Japan, France, Canada or Australia`
Joint Lead Manager and Sponsoring Member
The Standard Bank of South Africa Limited
(Registration number 1962/00738/06)
Joint Lead Manager
J.P. Morgan Securities South Africa (Proprietary) Limited
(Registration number 1996/015112/07)
Co-Manager
Andisa Capital (Proprietary) Limited
(Registration number 2003/001707/07)
Calculation Agent
The Standard Bank of South Africa Limited
(Registration number 1962/00738/06)
Attorneys to the Joint Lead Managers
Webber Wentzel Bowens
Attorneys to the Issuer
Werksmans Inc
Settlement Agent
The Standard Bank of South Africa Limited
(Registration number 1962/00738/06)
JSE Sponsor to the Issuer
Merrill Lynch South Africa (Pty) Limited
Johannesburg
3 June 2005
Date: 03/06/2005 03:53:23 PM
Produced by the JSE SENS Department
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