SOUTHERN VIEW FINANCE LTD - Disclosable event: Significant litigation proceedings - Report to shareholders

Disclosable event: Significant litigation proceedings - Report to shareholders

SOUTHERN VIEW FINANCE LIMITED
(Incorporated in Bermuda with registration number 47305)
Class A share codes: BSX: SVF.BH               JSE: SVF                 ISIN: BMG829251013
Class B share codes: BSX: SVFB.BH              JSE: SVFB                ISIN: BMG 829251195
("SVF" or "the Company")


DISCLOSABLE EVENT : SIGNIFICANT LITIGATION PROCEEDINGS – REPORT TO SHAREHOLDERS



1.     This Report is issued in accordance with the requirements of the BSX LR, following the release by
       the Company of the Announcement.


2.     In this Report, the following terms shall bear the meaning ascribed thereto unless the context
       indicates otherwise:


       2.1.    “Announcement” means the announcement regarding the Cancellation Application
               released on 17 February 2015 by the Company on SENS and by the BSX on the BSX
               website in accordance with the BSX LR;

       2.2.    “Cancellation Application” means the application brought by the NCR to the Tribunal for a
               cancellation of SVF UK’s registration as a credit provider under the NCA;

       2.3.    “Board” means the board of directors of SVF;


       2.4.    “BSX” means the Bermuda Stock Exchange;


       2.5.    “BSX LR” means the listing regulations of the BSX;


       2.6.    “JSE” means the JSE Limited (registration number 2005/022939/06), a company registered
               and incorporated with limited liability in accordance with the company laws of South Africa,
               and licensed as an exchange under the South African Financial Markets Act 19 of 2012;

       2.7.    “NCA” means the South African National Credit Act, 34 of 2005;


       2.8.    “NCR” means the South African National Credit Regulator, established in terms of the NCA;


       2.9.    “NCR Report” means the report issued by the NCR’s investigator dated 29 January 2015;


       2.10.   “Rules” means the Rules for the conduct of matters before the National Consumer Tribunal
               published in the South African Government Gazette GN789 of 26 August 2007;

       2.11.   “SENS” means the Stock Exchange News Service of the JSE;


       2.12.   “SVF UK” means Southern View Finance UK Limited, a company incorporated and
               registered in England and Wales (registration number 8428489) and a wholly owned
               subsidiary of SVF;
                                                                                                          2



       2.13.   “Tribunal” means the South African National Consumer Tribunal, established in terms of the
               NCA;


3.     In January 2015 the NCR conducted an investigation and audit of 26 agreements concluded by SVF
       UK with consumers in South Africa for the provision of unsecured loans.


4.     SVF UK received a complete copy of the Cancellation Application, filed by the NCR under Form TI
       57(1) as prescribed in terms of the Rules, on 6 February 2015. The Cancellation Application is
       based upon the NCR Report which, in turn, is based on the audit of 26 loan agreements concluded
       by SVF UK.


5.     In the Cancellation Application, the NCR alleges that, in advancing loans to the consumers detailed
       in the NCR Report in the circumstances detailed in the NCR Report, SVF UK advanced reckless
       credit and is therefore in breach of the provisions of the NCA.


6.     SVF UK is of the view, and has been advised by legal counsel, that its processes and procedures
       comply with the relevant legislation, including the NCA and the regulations issued in terms of the
       NCA.


7.     SVF UK has engaged the services of ENSafrica as its attorneys of record in this matter who, in turn,
       appointed counsel to assist in drafting the relevant opposing papers and to argue the matter before
       the Tribunal. SVF UK’s opposing papers were served and filed with the NCR and the Tribunal within
       the 15 business day period allowed in terms of the Rules, namely by Friday, 27 February 2015.


8.     The NCR has 10 business days to reply to SVF UK’s opposing papers, namely by 13 March 2015.
       The Tribunal will then set the matter down for hearing. SVF UK has been advised that it will in all
       likelihood take approximately 4 to 6 months, from 4 February 2015, for the matter to serve before the
       Tribunal.


9.     SVF UK will, to the extent appropriate and possible, explore whether there is manner in which the
       matter can be resolved in a shorter timeframe.


10.    Further announcements regarding the process of the matter will be made as and when appropriate.


SVF has a primary listing on the BSX and a secondary listing on the JSE’s Alternative Exchange.


3 March 2015
Hamilton / Johannesburg

BSX sponsor: Global Custody and Clearing Limited
JSE sponsor: KPMG Services (Proprietary) Limited
Legal advisor: Edward Nathan Sonnenbergs Inc

Date: 03/03/2015 05:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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