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SLO
SLO
SLO - Southern Electricity Company Limited - Cancellation of acquisition
transactions and changes to the board
Southern Electricity Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/006894/06)
JSE code: SLO
ISIN: ZAE000041919
("SELCO" or "the company)
CANCELLATION OF ACQUISITION TRANSACTIONS AND CHANGES TO THE BOARD
1. Cancellation of acquisition transactions
SELCo shareholders are referred to the announcement published by the company
on SENS on 18 June 2010 and in the press, wherein shareholders were advised
that the company had entered into three separate inter-conditional agreements
dated 17 June 2010 ("the agreements") to acquire the entire issued share
capital in Rural Maintenance (Proprietary) Limited, Netelek (Proprietary)
Limited and Netelek Technology Limited ("the transactions"). The agreements
were subject to the fulfilment, by 31 August 2010, of various conditions
precedent including the approval of SELCo shareholders which required SELCo
to send a circular to its shareholders and to convene a general meeting to
obtain shareholder approval. SELCo had proceeded with the transactions on the
basis of advice given to it on the IFRS accounting treatment of the
transactions. However, the JSE Limited has referred the matter to the GAAP
Monitoring Panel which has questioned this accounting treatment. If the
transactions were to be accounted for on the alternative basis being debated,
SELCo`s board does not believe that the shareholders would view it as being
in their best interest. Accordingly, it will not seek to extend the date for
the fulfilment of the conditions precedent.
2. Changes to the board
Shareholders are advised in terms of 3.59 of the JSE Listings Requirements
that CF Bosch (currently the chief executive officer), I Bosch (currently the
financial director) and S Nyovane have resigned as directors of the company.
The rationale for the restructuring of the board is to separate the business
of SELCo from that of the other entities to whose business the aforesaid ex-
directors are core. PM Bester who is currently an executive director of the
company will assume the role of chief executive director until the company`s
next annual general meeting. Helga Doring has been appointed to the board as
the financial director. A BCom graduate of the University of Pretoria, she
has been involved with SELCo since 2006. She is well versed in the Group`s
policies and procedures and her strong grasp of accounting principles and her
commitment to curbing expenditure and eliminating waste have helped
streamline operations over the past few years. The board looks forward to her
contribution in its constant drive to put processes and procedures in place
that ensure the smooth running of day-to-day business with maximum efficiency
at minimum cost.
Pretoria
2 September 2010
Sponsor:
Grindrod Bank Limited
Reporting accountants and auditors:
Mazars
Date: 02/09/2010 14:09:10 Produced by the JSE SENS Department.
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