m Cubed - Shareholders set to benefit, as due diligence is completed.
m CUBED HOLDINGS LIMITED
Registration number: 1998/014568/06
Share code: MCU
ISIN: ZAE000033353
(`m Cubed` or `the company`)
Good value
Shareholders set to benefit, as due diligence is completed.
It`s official - JSE-listed group m Cubed should have a cash pile of about R340m,
following the news released this week that the listed specialty finance group
had agreed to sell its non-core and some core businesses.
`The Fidentia due diligence of the businesses they wished to purchase has been
completed,` reports m Cubed holdings group MD John Storey, `and there are no
outstanding issues or price adjustments. All that remains is shareholder and
regulatory approvals.
`The cash pile has been boosted by the R234m from the recent disposals and in
excess of R100m that m Cubed has in cash currently. It also excludes the 13.1c
per share that was paid out to shareholders several months ago.
`All in all shareholders have done well. Added to the cash pile there are also
other assets that remain within the group, including a 50% investment in
Advantage Asset Managers.`
Last year Momentum valued the m Cubed portion of the asset management business
that went into the Advantage Asset Managers joint venture, at around R180m. The
50% shareholding in Advantage is reflected in the group`s balance sheet at a
carrying value of R51.8m.
`In fact,` says Storey, `our 50% investment in the Advantage business is doing
almost as well for the first quarter as the full investment did last year, for
the same period.`
In terms of operating businesses that remain after the announcement, Storey says
that there is the Employee Benefits business, the Specialised Investments
operation as well as certain elements of the international business.
Ends/
For further information contact John Storey on 08083-675-2664
6 July 2005
Sponsor: PSG Capital
Date: 06/07/2005 02:58:02 PM
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