MCU
MCU
MCU - m Cubed - Dispute with regulator settled, capital distribution and renewal
of cautionary announcement
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")
DISPUTE WITH REGULATOR SETTLED, CAPITAL DISTRIBUTION AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
The Board of Directors of m Cubed wishes to announce that pursuant to protracted
negotiations the dispute with the Regulator referred to in the Notice of Annual
General Meeting and group audited financial results announcement dated 8
December 2006 (in respect of which dispute a provision was raised in m Cubed`s
year end financial statements) has been settled. The m Cubed Board, supported
inter alia by and based on legal advice obtained from its attorneys, has taken a
commercial decision to pay an administrative levy that will be forfeited, which
is in line with the amounts already provided for by the Company. A contingent
liability remains for a further amount of R50 million which amount will be
retained by the Regulator until 31 January 2008. This amount plus interest or
a proportion thereof will be released to the Company to the extent that m Cubed
can demonstrate that they have taken reasonable steps to unwind or regularise
the transactions being the subject matter of the dispute.
The m Cubed Board in line with its stated focus on unlocking value for
shareholders proposes a capital distribution of 17 cents per share. This
distribution will be subject to shareholders approval and further details as
well as a circular to shareholders will be made available in due course.
Shareholders are further referred to the cautionary announcements of 14 December
2006 and 21 December 2006 and are advised to continue to exercise caution when
trading in the company`s shares. The implementation of the m Cubed Life Limited
transaction referred to in the announcement of 21 December 2006 is proceeding
according to plan and the administration of the Mcubed Life policy book was
outsourced to Channel Life with effect from 1 February 2007. The financial
effects of the Mcubed Life transaction is expected to be announced during the
first week of March 2007.
Cape Town
9 February 2007
Sponsor: PSG Capital Limited
Date: 09/02/2007 17:00:01 Produced by the JSE SENS Department.
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