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BELL - FURTHER CAUTIONARY ANNOUNCEMENT

Release Date: 19/02/1999 07:11
Code(s): BEL
Wrap Text
BELL EQUIPMENT LTD
(REGISTRATION NUMBER 68/13656/06)
("BELL")
FURTHER CAUTIONARY ANNOUNCEMENT

FURTHER TO OUR PREVIOUS CAUTIONARY ANNOUNCEMENTS BELL EQUIPMENT HAS PLEASURE IN ANNOUNCING A STRATEGIC ALLIANCE WITH A MAJOR INTERNATIONAL EQUIPMENT
MANUFACTURER AND DISTRIBUTOR. A LETTER OF INTENT HAS BEEN SIGNED AND INITIAL NEGOTIATIONS CONCLUDED OVER VARIOUS LEGAL AGREEMENTS INCLUDING A SUPPLY AND DISTRIBUTION AGREEMENT THAT GIVES OUR ALLIANCE PARTNER EXCLUSIVITY FOR CERTAIN MARKETS. A DUE DILIGENCE PROCESS HAS STARTED AND WILL BE CONCLUDED BY MID MARCH 1999 BY WHICH TIME THE BOARDS OF BOTH COMPANIES SHOULD HAVE APPROVED THE TRANSACTION. A CONFIDENTIALITY AGREEMENT PRECLUDES THE DISCLOSURE OF THE IDENTITY OF THE STRATEGIC PARTNER AT THIS STAGE.
THE STRATEGIC ALLIANCE WILL INCLUDE AN INVESTMENT OF R180 MILLION IN THE SHARE CAPITAL OF BELL EQUIPMENT. THE NEW SHARES THAT WILL BE ISSUED WILL RANK PARRI PASSU WITH THE EXISTING SHARES. THE TRANSACTION WILL REQUIRE THE FORMAL APPROVAL OF SHAREHOLDERS AND FULL PARTICULARS OF THE TRANSACTION WILL BE MAILED ON OR ABOUT 7 APRIL 1999.
IN THE MEANTIME SHAREHOLDERS ARE ADVISED TO CONTINUE TO EXERCISE CAUTION IN DEALING IN BELL EQUIPMENT SHARES. ON BEHALF OF THE BOARD DP MAHONY COMPANY SECRETARY RICHARDS BAY 1 FEBRUARY 1999

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