MFL
MFL
Metrofile Holdings - Cautionary announcement
Metrofile Holdings Limited
(Formerly MGX Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1983/012697/06)
Share code: MFL
ISIN: ZAE000061727
("Metrofile Holdings" or "the Group")
CAUTIONARY ANNOUNCEMENT
Shareholders of Metrofile Holdings are advised that:
1. Negotiations are well advanced concerning the possible settlement of a
legal dispute which is a material contingent liability of Metrofile
Holdings. If these negotiations are successfully concluded, there is not
expected to be any financial effect on Metrofile Holdings or the
Group except that the contingent liability will be eliminated.
2. In the results announcement published on SENS on 28 September 2005 (and in
prior announcements) stakeholders were advised that the consolidated
balance sheet of the Group contained provisions of R36.9 million for
liabilities not yet finally determined, and that Metrofile Holdings"
balance sheet (not the consolidated balance sheet) reflected liabilities of
R261.1 million to fellow subsidiaries ("inter-company loans") which might
become consolidated liabilities of the Group under certain circumstances.
Events are now in progress which may lead to adjustments being required to
the provisions and to the inter-company loans, the net effect of which may
be an increase of up to R25 million in the consolidated liabilities of the
Group. This would have the effect of increasing the negative net asset
value per share (as calculated based on the consolidated balance sheet at
30 June 2005) by approximately 38 cents per share to 497.4 cents per share,
and would reduce earnings per share by approximately 49 cents per share in
the 2005/6 financial year.
3. Neither of these matters will have any effect on Metrofile (Proprietary)
Limited.
Shareholders should accordingly exercise caution in dealing in the Group"s
securities until further announcements are made.
Johannesburg
13 January 2006
Sponsor
Standard Bank
Date: 13/01/2006 01:32:48 PM Produced by the JSE SENS Department
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