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EQSTRA HOLDINGS LIMITED - Clarification announcement: updated trading statement - EQS, EQS05 - EQS07, EQS08A, EQS09

Release Date: 25/02/2016 11:01
Code(s): EQS EQS07 EQS09 EQS08A EQS06 EQS05     PDF:  
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Clarification announcement: updated trading statement - EQS, EQS05 - EQS07, EQS08A, EQS09

Eqstra Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/011672/06)
Share codes: EQS, EQS05, EQS06, EQS07, EQS08A, EQS09
ISINs: ZAE000117123, ZAG000094731, ZAG000104449, ZAG000104506,
ZAG000109745, ZAG111089
(“Eqstra” or “the group” or “the company”)

CLARIFICATION ANNOUNCEMENT: UPDATED TRADING STATEMENT

Shareholders are referred to the announcement released on the Stock
Exchange News Service on 24 February 2016, entitled ‘Updated trading
statement and notification of interim results presentation’ in which Eqstra
reported an anticipated decrease in earnings.

The board of Eqstra wishes to clarify the statement in the announcement
regarding the ‘the closure of the Benga operations in Mozambique’.
Shareholders are advised that the company’s proposed disposal of the Benga
assets is ongoing. Once the final terms and conditions are agreed, a
further announcement will be made, containing full details of the terms of
proposed disposal. A circular will also be issued to Eqstra shareholders,
incorporating a Notice of General Meeting containing the necessary
resolutions to be approved by shareholders in order to implement the
proposed disposal. On the basis that the Benga operations ended on 31
December 2015, the results of these operations will be disclosed in the
group’s financial results for the six months ended 31 December 2015 as
discontinued operations. An impairment of R438 million has been raised to
reduce this related asset valuation to an asset held for sale value.

In addition, as part of continuing operations, the group also impaired
other excess mining equipment to the value of R736 million. These actions
are aligned to group strategy to reduce exposure to the mining sector, exit
non-core operations and improve liquidity.

These actions take group revenue-generating asset exposure of Contract
Mining and Plant Rental from 43% (30 June 2015) to a level of 28% (31
December 2015) as per the board’s commitment to shareholders.

The board believes these impairments are necessary for Eqstra ultimately to
deliver optimal value to stakeholders.


Kempton Park
25 February 2016

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

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