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COMBINED MOTOR HOLDINGS LIMITED - Financial Assistance Notice

Release Date: 16/10/2012 14:20
Code(s): CMH     PDF:  
Wrap Text
Financial Assistance Notice

Combined Motor Holdings Limited
(Registration number 1965/000270/06)
(Share code: CMH ISIN: ZAE000088050)
("CMH" or "the company")


NOTICE TO SHAREHOLDERS

IN TERMS OF SECTION 45(5) OF THE COMPANIES ACT (the “Act”)

1.     At the Annual General Meeting of Combined Motor Holdings Limited (the “Company”) held
       on 31 May 2012, shareholders authorised the Directors, by way of special resolution, to bind
       the Company in the provision of direct or indirect financial assistance to a related company.

2.     The Board confirms that on 9 October 2012 it passed a resolution in terms of which the
       Company is to provide financial assistance as contemplated in section 45 of the Act, by way
       of a guarantee in favour of Nedbank Limited for the obligations of CMH Car Hire Proprietary
       Limited (“CMH Car Hire”) to Nedbank Limited. The guarantee is limited to R100 million plus
       interests and costs.

3.     Before passing the abovementioned resolution, the Board was satisfied that:

       3.1     the Company satisfied the “Solvency and Liquidity Test” as contemplated in section
               4 of the Act; and

       3.2     the terms under which the financial assistance is to be given are fair and reasonable
               to the Company.

4.     The Board believes that CMH Car Hire has adequate resources to meet its obligations, and
       the guarantee will not be invoked.

5.     The Board would like to emphasise that the granting of financial assistance by and to
       companies within the CMH Group is a standard practice that has been consistently applied
       over many years.

By order of the Board




Kerrianne Fonseca CA(SA)
Company Secretary

Durban
16 October
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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