CAE
CAE
Cape Empowerment Trust Limited - Sancino announcement update
Cape Empowerment Trust Limited
(Incorporated in the Republic of South Africa)
Registration number 1998/014606/06
JSE share code: CAE & ISIN: ZAE000016952
("CET")
Sancino announcement update
Shareholders are referred to previous announcements in relation to the offer by
CET to ordinary shareholders of Sancino Projects Limited ("Sancino") to acquire
all of the shares held by such shareholders in Sancino.
Sancino has proposed to Sanlam that the preference shares held by Sanlam as well
as arrear dividends thereon be converted into ordinary shares, the effect of
which will be to dilute all ordinary shareholders, including CET. Sanlam has
also agreed, after its conversion, to sell to the members of the board of
directors (other than the Sanlam representative on the board) (in addition to
the shareholding already held by such directors) approximately 14.66% of the
total issued ordinary shares in the company.
In a bid to protect its interests CET challenged both Sancino and Sanlam before
the Competition Tribunal as well the Securities Regulation Panel. Both these
bodies declined to come to the aid of CET.
CET now believes that the most appropriate course of action would be to approach
the High Court of South Africa for relief. CET is considering all options at
its disposal in this regard.
Should CET ultimately be unsuccessful in its endeavours to protect its interests
it will nevertheless remain holding at least 20% of the total issued ordinary
share capital in Sancino which will now also be substantially debt free.
Cape Town
7 February 2006
Corporate advisor and sponsor
Sasfin Capital
(A Division of Sasfin Bank Limited)
Legal Advisor
Hofmeyr Herbstein & Gihwala Inc
Date: 07/02/2006 05:06:04 PM Produced by the JSE SENS Department
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