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Standard Bank Group Limited - Liberty Life announcement

Release Date: 13/12/2005 16:04
Code(s): SBK
Wrap Text

Standard Bank Group Limited - Liberty Life announcement Standard Bank Group Limited Incorporated in the Republic of South Africa Registration number 1969/017128/06 JSE Share Code: SBK Namibian Share Code: SNB ISIN: ZAE000057378 ("Standard Bank Group" or "the company") Liberty Group Limited ("Liberty Life") Shareholders of Standard Bank are referred to the Liberty Life announcement made today relating to the statements issued by the Ministry of Finance concerning minimum standards in respect of values for savings products (Retirement Annuities, Endowments and other savings products). Liberty Life stated that it "has been advising all its stakeholders on an on- going basis that a resolution was anticipated that may result in a once off reduction in the group"s embedded value. Until now it has been impossible to determine what the cost of the resolution would be, as many plausible scenarios existed. As a general understanding has now been reached with the Ministry of Finance regarding the scope and level of the resolution, it is likely that Liberty Life will make a provision in the 2005 year end financial statements for this cost, should a final resolution be reached. The resolution is subject to finalisation of new commission regulations along the lines of the LOA"s proposals, approval by Liberty Life"s board of directors and the fulfilment of certain other conditions precedent." Standard Bank is an approximately 30% effective shareholder of Liberty Life, and consequently, based on the Liberty Life estimations, its share of the reduction in Liberty Life"s BEE normalised embedded value will be in the range of R165 million - R180 million post tax. The extent to which the adjustment to embedded value will impact the normalised net asset value and normalised headline earnings of the group will only be resolved as part of the group"s 2005 year end process. The above information has not been reviewed and reported on by the company"s auditors. Johannesburg 13 December 2005 Date: 13/12/2005 04:04:24 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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