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M&R - ANNOUNCEMENT

Release Date: 30/04/1999 15:40
Code(s): MUR
Wrap Text
MURRAY & ROBERTS HOLDINGS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 05/29826/06)
("M&R" OR "THE GROUP")
ANNOUNCEMENT TO SHAREHOLDERS
ALLOY WHEELS INTERNATIONAL ("AWI")

IN THE GROUP'S INTERIM REPORT PUBLISHED ON 25 FEBRUARY 1999, IT WAS CONFIRMED THAT THE AWI ACTIVITIES WERE NOT CONSIDERED TO BE A CORE BUSINESS AND THAT THE GROUP'S ADVISORS DEUTSCHE MORGAN GRENFELL ("DMG") HAD BEEN APPOINTED TO EVALUATE THE MOST APPROPRIATE EXIT STRATEGY. THE INTERIM REPORT ALSO RECORDED THAT GOOD PROGRESS WAS BEING ACHIEVED IN IMPROVING THE OPERATING PERFORMANCE OF THESE ACTIVITIES.
PRELIMINARY SOUNDINGS OF POTENTIAL PURCHASERS HAVE BEEN MADE BY DMG, BUT TO DATE, NO OFFERS HAVE BEEN RECEIVED.
THE IMPROVEMENTS IN OPERATING PERFORMANCE HAVE CONTINUED AND THE BOARD IS PLEASED TO ADVISE THAT THE AWI BUSINESSES REPORTED AN OPERATING PROFIT IN THE MONTH OF MARCH 1999. IN ADDITION, A MAJOR AMERICAN AUTOMOBILE MANUFACTURER HAS AND THE PORT ELIZABETH PLANT HAS ALSO BEEN APPROVED AS A SUPPLIER TO A LEADING LUXURY AUTOMOBILE MANUFACTURER IN THE UNITED KINGDOM.
IN VIEW OF THESE DEVELOPMENTS, M&R HAS DECIDED TO DEFER THE SALE TO ENABLE AWI TO FURTHER IMPROVE PERFORMANCE AND PROFITABILITY WHICH SHOULD ENHANCE THE ULTIMATE SALE PROCEEDS. BY ORDER OF THE BOARD
L J LINDSAY BEDFORDVIEW
GROUP SECRETARY 30 APRIL 1999

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