Collection Holdings Limited
(Incorporated in the Republic of South Africa) (Incorporated in the
Republic of South Africa)
(Registration Number 1996/0645/06) (Registration Number
1998/00269/06)
("NCH") ("Hercol")
JOINT ANNOUNCEMENT
On 8 December 2000 NCH and Hercol announced the proposed acquisition by NCH
was subject to the fulfilment of certain suspensive conditions, including
the completion of a due diligence process. Following the completion of such
process, NCH withdrew from the transaction on 25 January 2001. Hercol
disputed NCH's right to so withdraw and the parties agreed to resolve the
matter by way of arbitration proceedings, due to commence on 21 May 2001.
NCH and Hercol have now entered into an agreement in terms whereof Hercol
has withdrawn the arbitration proceedings and the transaction will not be
proceeded with. Each party will bear its own costs.
The strategy of combining NCH direct marketing capability and database with
the fulfilment capacity and data mining skills of another party remains a
major objective of NCH. In pursuance of NCH's strategy as well as Hercol's
search for new opportunities, the parties will explore the feasibility of
entering into a mutually beneficial arrangement in this regard.
In view thereof that the transaction will not be proceeded with, Hercol's
shareholders are advised that they no longer have to exercise caution in
dealing with their shares on the JSE Securities Exchange South Africa.
Cape Town
___ May 2001
Attorneys to NCH Attorneys to
Hercol
Sponsor to NCH Sponsor to Hercol
Investment Bank
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