Dorbyl Limited - Statement By The Board
DORBYL LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 1911/001510/06
Share Code : DLV
ISIN Code : ZAE 000002184
(`Dorbyl` or `the company`)
STATEMENT BY THE BOARD
Following the sale of Alpine Engineered Products Inc., which represented a major
portion of the Dorbyl net asset value, and the subsequent declaration of a
special dividend of R26 per share, shareholders and other interested parties
have sought clarity on the following issues.
In the interest of equal treatment of all interested parties with regard to
disclosure of information, the Board has concluded that the company`s response
to these queries should be made public prior to the forthcoming Annual General
Meeting.
In evaluating the Dorbyl Group`s ongoing position with regard to the issues
raised, the following pertinent factors should be taken into consideration:
Alpine sale and the cash impact of the special dividend.
In terms of Exchange Control requirements, the net proceeds, after USA incurred
expenses from the Alpine sale, have been remitted to South Africa, and, net of
local costs, amounted to R1016 million.
All the outstanding share options have been exercised, increasing the number of
issued shares to 33 924 095 (net of treasury shares).
The total cost of the special dividend is therefore R993 million, inclusive of
STC of R110 million.
As the funds will have been held for a very short period, only a limited
interest benefit will be derived by Dorbyl from these proceeds.
Pension and Provident Funds - surplus apportionment exercise
Despite the best actuarial and legal advice available, until this retroactive
legislation and its application are clarified, it is impossible to quantify with
any degree of assurance the Group`s potential exposure in regard to the surplus
apportionment exercise. There could be a material liability in this regard.
Impairment of Dorbyl Automotive Technologies` Assets
The resurgent strength of the Rand has created some concern about its impact on
certain business units of Dorbyl Automotive Technologies, and, if the recent
weakening of the Rand is not resumed, it may well be necessary to consider
impairing, to some extent, the assets of those business units.
Black Economic Empowerment (BEE)
Dorbyl believes that it is of strategic importance to facilitate BEE
participation in Dorbyl Automotive Technologies, and will be promoting this
objective.
JOHANNESBURG
22 August 2005
Sponsor : PSG Capital Limited
Date: 22/08/2005 10:02:40 AM
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