Standard Bank Group Limited - Liberty Life announc
Standard Bank Group Limited - Liberty Life announcement
Standard Bank Group Limited
Incorporated in the Republic of South Africa
Registration number 1969/017128/06
JSE Share Code: SBK
Namibian Share Code: SNB
ISIN: ZAE000057378
("Standard Bank Group" or "the company")
Liberty Group Limited ("Liberty Life")
Shareholders of Standard Bank are referred to the Liberty Life announcement made
today relating to the statements issued by the Ministry of Finance concerning
minimum standards in respect of values for savings products (Retirement
Annuities, Endowments and other savings products).
Liberty Life stated that it "has been advising all its stakeholders on an on-
going basis that a resolution was anticipated that may result in a once off
reduction in the group"s embedded value. Until now it has been impossible to
determine what the cost of the resolution would be, as many plausible scenarios
existed. As a general understanding has now been reached with the Ministry of
Finance regarding the scope and level of the resolution, it is likely that
Liberty Life will make a provision in the 2005 year end financial statements for
this cost, should a final resolution be reached. The resolution is subject to
finalisation of new commission regulations along the lines of the LOA"s
proposals, approval by Liberty Life"s board of directors and the fulfilment of
certain other conditions precedent."
Standard Bank is an approximately 30% effective shareholder of Liberty Life, and
consequently, based on the Liberty Life estimations, its share of the reduction
in Liberty Life"s BEE normalised embedded value will be in the range of R165
million - R180 million post tax.
The extent to which the adjustment to embedded value will impact the normalised
net asset value and normalised headline earnings of the group will only be
resolved as part of the group"s 2005 year end process.
The above information has not been reviewed and reported on by the company"s
auditors.
Johannesburg
13 December 2005
Date: 13/12/2005 04:04:24 PM Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
