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BEL - Bell Equipment Limited - Changes to commercial relationship with

Release Date: 15/09/2011 15:00
Code(s): BEL
Wrap Text

BEL - Bell Equipment Limited - Changes to commercial relationship with John Deere Construction and Forestry Company and withdrawal of cautionary Bell Equipment Limited (Incorporated in the Republic of South Africa) (Registration number: 1968/013656/06) ISIN: ZAE000028304 Share Code: BEL ("Bell" or "the Company") CHANGES TO COMMERCIAL RELATIONSHIP WITH JOHN DEERE CONSTRUCTION AND FORESTRY COMPANY AND WITHDRAWAL OF CAUTIONARY Shareholders are referred to the cautionary announcement issued on 25 May 2011, which was renewed on 7 July and 19 August 2011. Shareholders were advised that discussions which relate to the Company which could have a material effect on the price of the Company`s shares, were still underway. Shareholders are hereby further advised that the continuing discussions are between the two major shareholders, I A Bell & Co (Pty) Limited ("I A Bell") and John Deere Construction & Forestry Company ("Deere"), and relate to the future ownership of Deere`s 31,59% shareholding in Bell. Following the launch by Deere of its own range of articulated dump trucks ("ADTs") and confirmation by Bell that it will continue with the design and manufacture of its own range of ADTs, Bell and Deere have been involved in discussions to amend or terminate certain product agreements between them, including the ADT manufacturing and distributor agreement in terms of which Deere currently manufactures, assembles and distributes Bell designed ADTs in certain markets under an exclusive distributor mandate. Although discussions are ongoing between the parties the successful completion of these negotiations and the amendment of the current license agreements between Deere and Bell will end the exclusivity provisions, facilitating Bell`s direct entry into certain strategic markets, in particular with respect to ADTs. Deere would also be free to sell its ADTs and other products throughout the world. Although the amendment of these agreements will result in a change to the commercial relationship between the parties in the medium to long term, both Deere and Bell have expressed their intention to remain committed as partners in other areas. In this regard it can be confirmed that discussions are also underway to ensure the continuation of Bell`s role as Deere`s dealer of construction and forestry equipment in South Africa and a number of other countries in Sub-Saharan Africa. If Deere disposes of its interest in Bell, the Deere nominated directors will step down as directors of Bell. If not, the issue of possible conflicts of interest of these directors will have to be dealt with. Accordingly, shareholders are advised that the cautionary announcement is hereby withdrawn and that shareholders will be kept informed of any further developments in this regard. Richards Bay 15 September 2011 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 15/09/2011 15:00:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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