MCU
MCU
m Cubed - Business Strategy Update
M CUBED HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1998/014568/06)
Share code: MCU & ISIN: ZAE000033353
("m Cubed" or "the Company")
BUSINESS STRATEGY UPDATE
As a result of the corporate activity that has taken place during the past
2 years, the m Cubed Group is predominantly comprised of cash (and near
cash assets) of approximately R 330 million (before any payment is made to
settle the dispute with the Regulator referred to below), m Cubed Life
Limited ("m Cubed Life"), m Cubed Specialised Lending (Pty) Limited; and
its two Guernsey businesses which have been sold to Fidentia Holdings (Pty)
Limited ("Fidentia") for R12,5 m, subject to the approval of the Guernsey
Financial Services Commission.
After a period of deliberation and as a consequence of the disposal of m
Cubed Life to Fidentia not being concluded (which resulted in market
uncertainty), the m Cubed Board has decided to stabilise and then
cautiously expand into niche markets. In order to pursue this strategy,
amongst other things the following has been implemented:
- The board of directors of m Cubed Life has been strengthened through
the recent appointment of Mr Steve De Kock as Managing Director and
the appointment of Professor Jacobus van Zyl Smit as a non executive
director.
- In order to provide existing and prospective policyholders with
greater security, and support the strategy referred to above a further
R 18 million of capital has been injected into m Cubed Life so as to
increase its capital adequacy ratio from 1,5 times to 2 times cover.
The dispute with the Regulator referred to in the notice of annual general
meeting and the group audited financial results announcement dated 23
August 2006 (in respect of which dispute a provision of R 90,4 million was
raised in m Cubed"s year end financial statements) has not yet been
resolved. Negotiations with the Regulator are still being pursued.
The m Cubed Board intends to distribute any available surplus cash to
shareholders as soon as is practically possible if and when the protracted
dispute with the Regulator has been settled.
Johannesburg
28 September 2006
SPONSOR: PSG CAPITAL LIMITED
Date: 28/09/2006 02:55:04 PM Produced by the JSE SENS Department
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