To view the PDF file, sign up for a MySharenet subscription.

AFRICAN BANK INVESTMENTS LIMITED - Disposal of Stangen

Release Date: 09/09/2015 08:30
Code(s): ABLP ABL     PDF:  
Wrap Text
Disposal of Stangen

AFRICAN BANK INVESTMENTS LIMITED (in business rescue)
Incorporated in the Republic of South Africa
(Registration number: 1946/021193/06)
Ordinary share code: ABL      ISIN: ZAE000030060
Preference share code: ABLP       ISIN: ZAE000065215
(“ABIL” or “the Company”)

DISPOSAL OF STANGEN



Shareholders are referred to the announcements released on SENS on 5 June 2015, 30 June 2015 and 14
July 2015 wherein shareholders were, inter alia, advised of the potential sale by ABIL of the entire issued share
capital of its wholly-owned subsidiary, The Standard General Insurance Company Limited (“Stangen”) and
that the Company had commenced voluntary business rescue proceedings in terms of section 129 of the
Companies Act, 2008 (Act 71 of 2008), as amended. Stangen operates as a long-term insurer within South
Africa and is primarily involved in underwriting credit life businesses to customers of African Bank Limited (in
curatorship) (“ABL”).

Shareholders are further advised that the Company has entered into a share purchase agreement with its
wholly-owned subsidiary, ABL and Stangen in terms of which ABIL will dispose of the entire issued share
capital of Stangen (“Sale Shares”) to ABL (“the Disposal”) subject to the fulfilment (or, to the extent
permissible, the waiver) of certain suspensive conditions including, inter alia, regulatory approvals, the
completion of a due diligence investigation, and the adoption of a business rescue plan proposing inter alia,
the sale of the Sale Shares (“Business Rescue Plan”).

The purchase consideration for the Sale Shares is expected to be R1.378 billion, which may increase by a
maximum of R50 million dependent on the actual level of net asset value of Stangen on the effective date of
the Disposal, being 1 October 2015. In addition to the abovementioned purchase price, ABIL has received a
dividend in cash and in specie totalling R797 million and will receive a further dividend of surplus cash on the
Stangen balance sheet immediately prior to the closing date of the Disposal.

The Disposal is in line with ABIL’s joint business rescue practitioners’ business rescue strategy and will form
part of the Business Rescue Plan.

Further details pertaining to the Disposal and the total realisations will be included in the Business Rescue
Plan which is due to be published on or about 14 September 2015.

By order of Messrs Dawie van der Merwe and John Evans as joint business rescue practitioners and the board.


Midrand
9 September 2015

Sponsor
Merchantec Capital

Date: 09/09/2015 08:30:00 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.

Share This Story