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Decillion Limited - Business update and renewal of cautionary announcement
Decillion Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/011692/06)
JSE code: DEC
ISIN: ZAE000017612
("Decillion" or "the company")
BUSINESS UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Following the commentary in its 2005 year-end results, the company is finalising
its phased exit from all forms of proprietary trading, and the transfer of all
counter-party exposures across the two ring-fenced special purpose vehicles that
were created to address the difference in valuation between the group"s long-
dated structured finance swaps (Decab I) and the cross-currency swaps (Decab
II). These portfolios are currently managed as static portfolios between
Decilllion and ABSA Corporate and Merchant Bank (ABSA).
On 28 July 2005 the company announced that transactions of significance to the
ongoing restructuring activities were at an impending stage.
On 2 August 2005, the disposal of Decillion Treasury Management Solutions
(Proprietary) Limited ("DTMS"), a wholly-owned subsidiary of Decillion, was
announced. DTMS conducted the business of foreign exchange execution and
outsourced treasury management services.
The following significant initiatives are currently in progress:
* Discussions between Decillion and ABSA with regard to the possible
settlement of liabilities in respect of the Decab I and Decab II
portfolios.
* The realisation of the company"s shareholding in the funds management
business of Decillion Fund Management (Proprietary) Limited following
positive interest for the business from third parties.
* Initiating a process for the disposal of the company"s overseas businesses
on a basis that will remove the company"s see through liability.
* Ring-fencing outside of the Decillion Group of the historical financing
transactions facilitated by the Decillion Group in a manner which will
protect and ensure the ongoing maintenance and integrity of the
transactions.
* The conversion of the other remaining assets of the group into cash.
* Subject to the successful conclusion of the aforementioned and an agreement
in principal with a majority of the company"s stakeholders, a proposal for
distribution to shareholders of all uncommitted cash resources against
cancellation of their shareholdings in the company will be made
simultaneously with an application by the company to terminate its listing
on the JSE Limited.
In addition to obtaining the approval of the relevant regulatory authorities in
respect of the above transactions as may be necessary, the approval of Decillion
shareholders in a general meeting and at a scheme meeting will be required to
complete aspects of the above.
The strategic initiatives outlined above are part of a deliberate process to
maintain the integrity of the underlying businesses, having regard to the
interest, of all other stakeholders by optimising the value received for the
businesses.
Shareholders are accordingly advised to continue to exercise caution when
dealing in the company"s securities until a full announcement of the above
initiatives in a circular to shareholders is made.
Johannesburg
29 September 2005
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Attorneys
Jowell Glyn & Marais
Date: 29/09/2005 12:00:04 PM
Produced by the JSE SENS Department
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