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CHEMICAL SPECIALITIES LIMITED - Chemspec group restructure cautionary announcement and compulsorily convertible preference shares conversion

Release Date: 19/11/2014 15:50
Code(s): CSP CSPP     PDF:  
Wrap Text
Chemspec group restructure cautionary announcement and compulsorily convertible preference shares conversion

Chemical Specialities Limited
Incorporated in the Republic of South Africa
Registration number 2005/039947/06
Share code: CSP & CSPP
ISIN: ZAE000109427
("Chemspec" or "the Company")


CHEMSPEC GROUP RESTRUCTURE CAUTIONARY ANNOUNCEMENT AND COMPULSORILY
CONVERTIBLE PREFERENCE SHARES CONVERSION
1.   Restructure Plan
ChemSpec announces that it has entered into negotiations which, if
successful will result in the restructuring of the group which will
have long term benefits for its shareholders (the “Restructure
Plan”).

2. Compulsorily convertible preference shares
Pursuant to and as part of the proposed Restructuring Plan, it is
proposed that the conversion into ordinary shares of the existing
compulsorily convertible preference shares (“CCPs”) in ChemSpec
will be accelerated by issuing ordinary shares at an exchange ratio
that will incorporate the discounted present value of all CCPs
dividends due in respect of the period ending on the original
compulsory conversion date of the CCPs.

In anticipation of the approval of the Restructuring Plan by the
relevant shareholders, the Company will not be declaring and paying
a dividend on the CCPs for the six months ending 25 November 2014.

The proposed conversion of the CCPs requires shareholder approval
and such resolution will be included in the transaction circular
and notice of meeting relating to the proposed Restructure Plan
that will be circulated to shareholders in due course, should the
negotiations be successful.

3. Cautionary
Shareholders are advised that the proposed Restructuring Plan, if
successfully concluded, may have a material effect on the price of
the Company’s securities. Accordingly, shareholders are advised to
exercise caution when dealing in the Company’s securities until a
further detailed terms announcement is made.



Durban
19 November 2014

Designated Advisor:
Grindrod Bank Limited

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