Super Group ends talks with strategic investor

28 Sep 2009

Supply chain management business Super Group advised shareholders that the relevant strategic investor had not been able to obtain sufficient written irrevocable support from shareholders to satisfy the lenders' requirements and as a consequence, the Alternative Recapitalisation Proposal will not proceed.

Super Group further noted that the original proposed debt restructuring and equity recapitalisation of Super Group would proceed.

Super Group shareholders, at a general meeting earlier this year, approved resolutions regarding an increase in the authorised share capital of Super Group and the placing 2,727,580,820 authorised but unissued Super Group shares under the control of the directors of Super Group for the purposes of a proposed rights offer.

The group said shareholders had been informed that the proposed rights offer would be undertaken at a price of 45 cents per Super Group share, and that the rights to subscribe for new Super Group shares would be issued to Super Group shareholders in the ratio of 41 new Super Group shares for every 10 Super Group shares held on the record date of such rights offer.

The proposed rights offer is underwritten to the extent of R1-billion by Absa Bank Limited, Allan Gray Limited, Barclays Bank plc, FirstRand Bank Limited, Futuregrowth Asset Management (Proprietary) Limited, Investec Bank Limited, KADD Capital (Proprietary) Limited and Nedbank Limited, said Super Group.

Shareholders were advised that they are no longer required to exercise caution when dealing in Super Group shares in relation to the Alternative Recapitalisation Proposal.

However, regarding the Original Recapitalisation Proposal, shareholders were advised to continue exercising caution when dealing in their Super Group shares until the financial effects of the proposed rights offer are published.

Super Group further advised shareholders that negotiations with regard to the disposal of the AutoZone and the Emerald Insurance businesses and Super Group Industrial Products inventory were still in progress which, if successfully concluded, may have a material effect on the price of Super Group's shares.

"Shareholders should therefore continue to exercise caution when dealing in Super Group shares," it said.

On Friday, shares in Super Group ended down nine cents, or 8.26%, at one rand.

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