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SCL - Sacoil Holdings Limited - Salient dates and times, posting of circular to
shareholders, Identiguard litigation update, trading statement and further
cautionary announcement
SACOIL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE share code: SCL
AIM share code: SAC
ISIN: ZAE0000127460
("SacOil" or "the Company")
Salient dates and times, posting of circular to shareholders, Identiguard
litigation update, trading statement and further cautionary announcement
1. Introduction
Shareholders of SacOil ("Shareholders") are referred to the announcement
released on the Securities Exchange News Service ("SENS") of the JSE Limited
("JSE") and on the Regulatory News Service of the London Stock Exchange on
Thursday, 13 October 2011 regarding:
* a specific issue of ordinary shares to Timtex Investments Proprietary
Limited ("Timtex"), an associate of Encha Group Limited ("Encha");
* a Standby Equity Distribution Agreement of USD25m with Yorkville Advisers
UK LLP; and
* a promoter`s fee of R1 500 000 payable to Encha;
(collectively referred to as "the Transactions".)
2. Circular to Shareholders
Shareholders are advised that a circular dated 24 October 2011, setting out the
full details of the Transactions as well as details of proposed amendments to
the SacOil share option scheme, will be delivered to Shareholders today, either
by email or courier and that the general meeting of Shareholders to approve the
Transactions ("the General Meeting"), will be held on at 09:00 on Thursday, 17
November 2011 at the registered office of SacOil being 2nd Floor, The Gabba
Building, Dimension Data Campus, 57 Sloane Street, Bryanston, 2021 ("the
Registered Office").
Shareholders are further advised that copies of the Circular may be obtained
during normal business hours from Monday, 24 October 2011 until Thursday, 17
November 2011 both days inclusive, from the Registered Office, the sponsor; The
Standard Bank of South Africa Limited, 5th Floor, 3 Simmonds Street,
Johannesburg, 2001 or the transfer secretaries; Link Market Services South
Africa Proprietary Limited, 13th Floor, Rennie House, 19 Ameshoff Street,
Braamfontein, Johannesburg, 2001.
The Circular will also be available for download in electronic form from the
Company`s website www.sacoilholdings.com
3. Salient Dates and Times
Shareholders are herewith advised of the salient dates and times relating to the
Transactions:
2011
Last day to trade in SacOil shares on the JSE Limited ("JSE")
and on the AIM Market of the London Stock Exchange ("AIM") in
order to be recorded in the share register on the Record Date
to be to be eligible to vote at the General Meeting Friday, 4
November
Record Date to be eligible to vote at the General Meeting Friday, 11
November
Last day to lodge forms of proxy for the General Meeting by Tuesday, 15
09:00 November
General Meeting to be held at 09:00 Thursday, 17
November
Results of the General Meeting released on SENS Thursday, 17
November
Results of the General Meeting published in the press Friday, 18
November
Expected date of listing the new SacOil Ordinary Shares on Monday, 21
the JSE and of admission of the new SacOil Ordinary Shares to November
trading on AIM
Notes
1. All times shown above are South African local times.
2. These dates and times are subject to change. Any material changes will
be released on SENS and published in the South African press.
4. Litigation statement
Identiguard matter update
The Company previously reported on the application instituted by Identiguard
International Proprietary Limited (Identiguard) against SacOil Proprietary
Limited, an entity in which the company owns 50% of the issued share capital.
Identiguard obtained a judgment against the DRC Government. In partial execution
of that judgment, Identiguard sought to attach the payment of the supplementary
signature bonus (US$2 million) under the Block III Production Sharing Agreement
that was concluded between SacOil Proprietary Limited and the DRC Government.
Despite SacOil Proprietary Limited`s opposition to the application, the South
Gauteng High Court ("High Court") delivered judgment in favour of Identiguard
during May 2011 and authorised the notice of attachment. SacOil Proprietary
Limited applied for leave to appeal against the High Court judgment. The
application for leave to appeal was heard on Tuesday, 4 October 2011 and since
this date, SacOil Proprietary Limited was granted leave to appeal to the Supreme
Court of Appeal. In delivering the judgment in the application for leave to
appeal, the High Court concluded that there was a reasonable prospect that
another court may come to a different conclusion and therefore the granting of
leave to appeal was warranted. It is unlikely that the appeal will be heard by
the Supreme Court of Appeal before next year.
5. Trading Statement
In terms of the Listings Requirements of the JSE, companies are required to
publish a trading statement as soon as they become aware that the financial
results for the period to be reported upon next will differ by at least 20% from
the financial results for the previous corresponding period even if it does not
have reasonable certainty in terms of providing a range.
Accordingly, SacOil shareholders are advised that the Group has reasonable
certainty that the Group`s earnings and headline earnings for the six months
ending 31 August 2011 will be negatively impacted by at least 330% to 350%. This
is mainly due to the following costs incurred during the six months to 31 August
2011:
* Costs incurred in relation to the Company`s admission to AIM on 8 April
2011;
* Costs incurred in relation to the Group`s current and future oil and gas
operations;
* A share-based payment expense recognised in profit and loss (in accordance
with IFRS 2 - Share-Based Payments), in an amount of R8, 9million, in
relation to equity settled call options granted to Renaissance BJM
Securities (Proprietary) Limited ("Renaissance") and approved by
Shareholders at a general meeting held on 31 March 2011. In terms of the
call option confirmations, Renaissance has been granted call options by
SacOil in respect of SacOil`s ordinary shares with an expiration date of 20
February 2012. The number of options granted are 6 394 888 call options
with a strike price of R1, 45 per ordinary share and 5 626 234 call options
with a strike price of R1, 48 per ordinary share.
The Company`s Manganese plant, better known as the Greenhills Plant, remained
profitable for the period under review.
The interim results for the six months ending 31 August 2011 will be released on
or about 31 October 2011. This trading statement has not been reviewed or
reported on by SacOil`s auditors
6. Further cautionary announcement
Shareholders should note that the further cautionary announcement as published
on SENS on 13 October 2011 remains in force. Shareholders should therefore
continue to exercise caution when dealing in their SacOil shares until a further
announcement is made.
25 October 2011
Johannesburg
JSE Sponsor
The Standard Bank of South Africa Limited
For further information please contact:
AIM Nominated Adviser and Joint Broker
finnCap Ltd
Matthew Robinson / Christopher Raggett +44 (0)20 7220 0500
Joint Broker (United Kingdom)
Shore Capital Stockbrokers Ltd
Jerry Keen / Bidhi Bhoma +44 (0)20 7408 4090
Public Relations (South Africa)
The Riverbed Agency (SA)
Raphala Mogase / Bongiwe Moeli +27 (0) 11 783 7903
Public Relations (United Kingdom)
Pelham Bell Pottinger (UK)
Philip Dennis/Nick Lambert/Rollo Critchton-Stuart +44 (0)20 7861 3232
Date: 25/10/2011 08:00:23 Supplied by www.sharenet.co.za
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