PSG - PSG - Reunert And PSG Undo Joint Ventrue In Quince Capital
PSG Group Limited
Incorporated in the Republic of South Africa
Registration number 1970/008484/06
Share code: PSG
ISIN code: ZAE000013017
("PSG" or "the Company")
Reunert Limited ("Reunert") and PSG Group Limited ("PSG") have agreed to end
their joint participation in Quince Capital Holdings (Pty) Limited ("Quince")
formed in May 2007.
The subprime crisis has the potential of greatly increasing the cost of funding
to Quince necessitating exploring alternative ways of financing the business.
Such evaluation of funding options has led the partners in Quince to conclude
that it would be in the interest of shareholders to undo the joint venture.
Consequently, Reunert will acquire all the shares not owned by Reunert in Quince
for approximately R420 million, being the original amount invested by the
exiting shareholders (including PSG), plus the retained profit in Quince
attributable to these shareholders for the period 2 May 2007 to 31 January 2008
payable in cash. Simultaneously, PSG, Michiel le Roux and management will
purchase their original investments previously sold to Quince, i.e. Quince
Property Finance (previously ZS Rational) and Quince Scripfin, from Quince. They
shall continue to develop these profitable companies and explore further
The aforesaid is subject to the finalisation of formal agreements between Quince
Shareholders, as well as shareholder and regulatory approvals (to the extent
required) and, if approved, will have an effective date of 1 February 2008.
5 February 2008
Date: 05/02/2008 16:40:01 Produced by the JSE SENS Department.
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