MTL - Mercantile - Response by majority shareholder and Withdrawal of Cautionary

MTL - Mercantile - Response by majority shareholder and Withdrawal of Cautionary
Mercantile Bank Holdings Limited                                                
(Incorporated in the Republic of South Africa)                                  
(Registration Number 1989/000164/06)                                            
Share code: MTL   ISIN: ZAE000064721                                            
("Mercantile" or "the company")                                                 
RESPONSE BY MAJORITY SHAREHOLDER AND WITHDRAWAL OF CAUTIONARY                   
Mercantile shareholders are referred to the detailed announcement dated 30 June 
2011 regarding an unsolicited firm intention to acquire the entire issued share 
capital of Mercantile ("the firm intention") received from The Bidvest Group    
Limited ("Bidvest") ("the Offer"). Conditions precedent to the Offer were, inter
alia, that it will not be made unless Bidvest receives, by no later than 22 July
2011, a signed undertaking from Caixa Geral De Depositas S.A. ("CGD") in respect
of their total shareholding, to accept the Offer once made.                     
The board of directors of Mercantile has received formal communication from the 
board of directors of CGD that they are not prepared to provide Bidvest with    
such undertaking to accept the Offer.                                           
Mercantile shareholders are therefore advised that they are no longer required  
to exercise caution when dealing in their Mercantile shares.                    
Johannesburg                                                                    
6 July 2011                                                                     
Sponsor to Mercantile: Bridge Capital Advisors (Proprietary) Limited            
Date: 06/07/2011 17:05:01 Supplied by www.sharenet.co.za                     
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