PSG/Absa - Update regarding the proposed scheme of arrangement relating to PSGBH

PSG/Absa - Update regarding the proposed scheme of arrangement relating to PSGBH
PSG Group Limited                       Absa Group Limited                      
(Incorporated in the                    (Incorporated in the                    
Republic of South Africa)               Republic of South Africa)               
(Registration number: 1970/008484/06)   (Registration number:  1986/003934/06)  
Share code: PSG  ISIN: ZAE000013017     Share code: ASA  ISIN: ZAE000013389     
("PSG Group")                           ("Absa Group")                          
PSG Investment Bank Holdings Limited    Absa Bank Limited                       
(Incorporated in the                    (Incorporated in the                    
Republic of South Africa)               Republic of South Africa)               
(Registration number: 1998/017358/06)   (Registration number:  1986/004794/06)  
Share code: PGH  ISIN: ZAE000018818     ("Absa")                                
("PSGBH")                                                                       
Update regarding the proposed scheme of arrangement relating to PSGBH           
In announcements dated 13 September 2002, shareholders of Absa Group, PSG Group 
and PSGBH were advised, inter alia, that Absa had completed its due diligence on
PSGBH and that implementation of the proposed scheme of arrangement ("scheme")  
was subject to the timely fulfilment, by 30 October 2002, of the remaining      
conditions precedent.                                                           
Shareholders are advised that it is now considered unlikely that all conditions 
precedent in respect of the regulatory approvals will be fulfilled before 30    
October 2002, which date has, by mutual agreement, been extended to 28 February 
2003. Consequently, Absa has agreed to increase the scheme offer price in that, 
with effect from 15 November 2002, the offer price of 60 cents per PSGBH share  
will attract interest at 12% per annum (nominal annual compounded monthly in    
arrears) until the date the scheme consideration is paid. The same interest rate
will apply to the cash amount of 4 cents per PSGBH share to be distributed to   
PSGBH shareholders.                                                             
The aforesaid considerations are in addition to the distribution of shares in   
Vestacor Limited to PSGBH shareholders, which based on Vestacor`s current share 
price of 100 cents per share, amounts to approximately 5, 8 cents per PSGBH     
share.                                                                          
Shareholders will be informed of the salient times and dates for the            
implementation of the scheme in due course.                                     
Johannesburg                                                                    
17 October 2002                                                                 
Investment bank and joint            Advisors to Absa                           
sponsor to PSG Group and PSGBH                                                  
PSGBH                                Absa Corporate and Merchant Bank           
Corporate Finance                          

Sponsor to PSG Group and PSGBH       Sponsor to Absa Group                      
PwC                                  Merrill Lynch                              
Attorneys to PSGBH                   Attorneys to the scheme                    
Fluxmans                             Cliffe Dekker                              
Date: 17/10/2002 05:05:00 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department