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SEKUNJALO STATEMENT ON SPECULATION ON SALE OF LEISURENET

Release Date: 03/04/2000 16:08
Code(s): SKJ
Wrap Text
SEKUNJALO INVESTMENTS LTD
(REG. NO. 96/03093/06)
PRESS RELEASE
STATEMENT ON SPECULATION ON SALE OF LEISURENET

DR. IQBAL SURVE CEO OF SEKUNJALO INVESTMENTS, THE SINGLE LARGEST SHAREHOLDER IN LEISURENET, MOVED TO END RECENT SPECULATION IN THE MARKET REGARDING LEISURENET AND SEKUNJALO INVESTMENTS.
DR SURVE REITERATED HIS PREVIOUS STATEMENT THAT SEKUNJALO VIEWED ITS INTEREST IN LEISURENET AS A LONG TERM INVESTMENT AND WAS NOT INTERESTED IN A QUICK SELL FOLLOWING RECENT SPECULATION THAT SEKUNJALO WAS CONSIDERING DISPOSING OF ITS LEISURENET INTEREST.
HE SAID "WE BELIEVE THAT THE MARKET HAS MISINTERPRETED THE PRICING OF BOTH THE SEKUNJALO AND LEISURENET STOCK. BOTH ARE SERIOUSLY UNDERVALUED GIVEN THE STRONG LEISURENET EARNINGS GROWTH COMING FROM BOTH THE ON AND OFFSHORE OPERATIONS." CONFIRMING THE SPECULATION WHICH RESULTED AFTER LEISURENET RELEASED A
CAUTIONARY RECENTLY, DR.SURVE SAID THAT THE LEISURENET GROUP HAD BEEN
APPROACHED BY INTERNATIONAL GYM GROUPS AND PRIVATE EQUITY FUNDS WHICH HAD TABLED VARIOUS OFFERS, WHICH WERE AT A SIGNIFICANT PREMIUM TO CURRENT MARKET PRICES, BUT WHICH WERE NONETHELESS CONSIDERED UNACCEPTABLE. ACCORDINGLY, IT IS UNDERSTOOD THAT THIS WAS THE REASON FOR THE WITHDRAWAL OF THE LEISURENET CAUTIONARY.
ACCORDING TO DR. SURVE, A MERGER WITH AN INTERNATIONAL PLAYER WOULD BE WELCOMED ON CONDITION THAT IT ENHANCED THE EARNINGS GROWTH IN LEISURENET AND WAS IN THE INTERESTS OF LEISURENET SHAREHOLDERS. HE SAID THAT IT WAS HIGHLY UNLIKELY THAT A HOSTILE BID FOR LEISURENET WOULD SUCCEED CONSIDERING THE EQUITY STAKE WHICH SEKUNJALO HOLDS IN THE COMPANY AS WELL AS THE SENTIMENT OF OTHER LEISURENET SHAREHOLDERS CANVASSED BY SEKUNJALO.
HE ADDED THAT IT WAS HIS UNDERSTANDING THAT LEISURENET WOULD ISSUE A PRESS RELEASE TO SPECIFICALLY ADDRESS MARKET CONFUSION ABOUT LEISURENET'S ACCOUNTING POLICY AND OFFSHORE STRATEGY WHICH SHOULD ASSIST THE MARKET IN PRICING THE LEISURENET STOCK APPROPRIATELY. ENDS 3 APRIL 2000
DIRECTORS; DR M.I SURVE(CHIEF EXECUTIVE) *M.Y KAJEE CA (SA), *K.PATEL, M.J MORIFI ADV, W.MGOQI(CHAIRPERSON), K..ROMAN, R.SERIA, S. LEWIS, E.SNYDERS, D.GIHWALA, Z.KOTA(ALT), *PROF L. LOOTS, D.CASE(ALT) *EXECUTIVE DIRECTORS

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