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AFRICAN PHOENIX INVESTMENTS LIMITED - Update on Stangens Run-down Credit Life Portfolio

Release Date: 03/03/2017 13:28
Code(s): AXL AXLP     PDF:  
Wrap Text
Update on Stangen’s Run-down Credit Life Portfolio

AFRICAN PHOENIX INVESTMENTS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1946/021193/06)
Ordinary share code: AXL       ISIN: ZAE000221370
Hybrid instrument code: AXLP      ISIN: ZAE000221388
(“Phoenix” or “the Company”)


UPDATE ON STANGEN’S RUN-DOWN CREDIT LIFE PORTFOLIO


Shareholders are referred to the ‘Condensed audited financial results for the year ended
30 September 2016’(“Results”) released on SENS on 21 December 2016 wherein shareholders
were advised inter alia, that The Standard General Insurance Company Limited (“Stangen”), the
Company’s wholly-owned and sole operating subsidiary, had concluded an agreement and
financial settlement with African Bank Limited and Residual Debt Services Limited in respect of its
run-down credit life portfolio effective 1 April 2016. As set out in the Results, pursuant to the
agreement, 100% of the risk and benefit in the credit life portfolio passes to Guardrisk Life Limited
(“Guardrisk”) until such time as the run-down credit life portfolio is legally transferred to Guardrisk.
The aforementioned transfer, which is subject to regulatory approval, is expected mid-2017.

Shareholders are hereby advised that the Deputy Registrar of Long-Term Insurance at the
Financial Services Board (“FSB”) has given in-principle approval for the transfer of the run-down
credit life portfolio of Stangen to Guardrisk. Previously, the credit life portfolio was distributed
through Residual Debt Services Limited (under curatorship), formerly African Bank Limited (under
curatorship) (“RDS”). RDS was restructured in 2016 and transferred some of its business to the
new African Bank Limited.

As a result of the in-principle approval of the transfer, the policyholder communication plan, which
is mandated by the FSB, be implemented with effect from 3 March 2017. The communication
plan requires certain documents (as set out below) to be made available for inspection at the
registered office of Stangen and, inter alia, on Stangen’s website at www.stangen.co.za.

Documents available for inspection

-   The FSB transfer notification;
-   the transfer agreement (entered into between Stangen, African Bank Limited,RDSand
    Guardrisk);
-   the resolutions by each of the boards of directors of Stangen and Guardrisk approving the
    transfer;
-   the Annual Financial Statements of Stangen for the year ended 30 September 2016;
-   the Annual Financial Statements of Guardrisk for the year ended 30 June 2016;
-   the report by the statutory actuary of Stangen on policyholder protection and fairness;
-   the report by the statutory actuary of Guardrisk on policyholder protection and fairness; and
-   the policyholder communication notices.

Shareholders are further advised that as a result of the mandatory policyholder communication
plan, the audited Annual Financial Statements of Stangen for the year ended 30 September 2016
are    also    available   on   the     African   Phoenix    Investments    Ltd   website   at
www.phoenixinvestments.co.za/#investor

Johannesburg
3 March 2017

Sponsor
Merchantec Capital

Date: 03/03/2017 01:28:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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