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AFRICAN BANK LIMITED - Extension of comment period on Information Memorandum

Release Date: 09/10/2015 08:00
Wrap Text
Extension of comment period on Information Memorandum

AFRICAN BANK LIMITED (in Curatorship)
(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
(“African Bank” or “the Bank”)

Extension of comment period on Information Memorandum

Stakeholders are referred to the statement regarding the Curatorship of African Bank ("the
Curatorship") made by the then Governor of the South African Reserve Bank ("SARB"),
Ms. Gill Marcus, on 10 August 2014 ("the SARB statement").


The SARB statement confirmed that Mr. Tom Winterboer was appointed as Curator of
African Bank ("the Curator") in terms of the Banks Act No. 94 of 1990 (as amended) on 10
August 2014. At the same time the SARB statement set out a proposal for the restructuring
of African Bank, which entailed the creation of a new "Good Bank" ("the Good Bank
Restructuring Proposal").

Further detail regarding the Good Bank Restructuring Proposal has been communicated to
stakeholders via an information memorandum released on 9 September 2015 ("Information
Memorandum"), details of which were provided in the SENS announcement released by
African Bank on 9 September 2015 (“Publication of Information Memorandum for the Good
Bank Restructuring Proposal and Acquisition of the Standard and General Insurance
Company Limited”). Information contained in SENS announcements related to the Good
Bank Restructuring Proposal between 10 August 2014 and 9 September 2015 were
superseded by the contents of the Information Memorandum.


Subsequently, further detail regarding developments resulting in a delay in respect of the
proposed acquisition of the Standard and General Insurance Company Limited (“Stangen”)
was given in a SENS announcement released by African Bank on 1 October 2015
(“Quarterly update in terms of Section 1.10(c) of the JSE Listings Requirements”).


The interim interdict issued by the High Court of South Africa, Gauteng Division, Pretoria, on
28 September 2015 has effectively postponed, by 30 business days, the meeting of creditors
of African Bank Investments Limited (“ABIL”) convened to consider the ABIL business
rescue plan, which provides for the sale of Stangen to African Bank. This postponement may
result in a delay in the timetable announced in the Information Memorandum for the
completion of the Good Bank Restructuring Proposal.

Whilst the Curator still considers the acquisition of Stangen to be a worthwhile part of the
Good Bank Restructuring Proposal, the alternatives available to the Curator mean that there
is little merit in delaying the proposed transaction to accommodate what may become a
substantial delay in acquiring Stangen. The Curator remains of the opinion that the Good
Bank Restructuring Proposal is the best outcome for creditors, employees and the wider
financial services and banking sector stability in South Africa, whether Stangen is acquired
or not.

The Curator therefore today announces an extension to the period for interested parties to
provide written comment on the Information Memorandum electronically   at
curatorfunders@africanbank.co.za. A further update in respect of the Good Bank
Restructuring Proposal and acquisition of Stangen will be provided prior to 23 October 2015
together with an amended closing date for comments on the Information Memorandum, and
an update on the overall timetable.



On behalf of the Curator of the Bank

Midrand
09 October 2015

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Footnote : T Winterboer was appointed as Curator of African Bank Limited on 10 August
2014 by the Minister of Finance of the Republic of South Africa and pursuant to the Banks
Act No. 94 of 1990 (as amended) to manage the affairs of African Bank Limited subject to
the supervision of the Registrar of Banks. Please note that Mr Winterboer acts in the
aforesaid capacity.

Date: 09/10/2015 08:00:00 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.

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