SENS Note - 06 April 2005 |
MTN -- Newshelf redemption of funding instruments |
Further to the Newshelf announcement made on 20 December 2002, shareholders of MTN are advised that Newshelf has on 31 March 2005 concluded an agreement with, inter alia, Transnet and the Public Investment Commissioners for the purpose of redeeming early certain of the funding instruments which were issued by Newshelf between December 2002 and March 2003 to raise the funding to acquire 309 million MTN shares (18.7% of the issued share capital of MTN at the time). Newshelf is wholly owned by The Alpine Trust, whose beneficiaries are the management and staff of MTN, including the executive directors. The early redemption agreement, entered into pursuant to a request from certain of Newshelf`s funders will, after implementation, enable the funders and Newshelf to reduce the risk in the existing funding structure, thereby leaving Newshelf with an unencumbered holding in MTN for the benefit of The Alpine Trust`s beneficiaries. The salient terms of the early redemption are as follows:
The PIC has confirmed its intention to remain a long term investor in MTN. Newshelf will retain 115 105 422 MTN shares, equal to 6.9% of the aggregate issued share capital of MTN, prior to:
Further to the MTN announcements made on 11 April 2003 and 26 September 2003 regarding the exercise by the executive directors of MTN at the time of an option to acquire 0.23% of the economic interests of the B preference shares and 0.23% of the economic interests of the B participating preference share for a total consideration of R5m, shareholders of MTN are advised that, in terms of the early redemption agreement, the executive directors will dispose of their economic interests in the B preference shares and the B participating preference share back to the PIC for a consideration to be paid in the form of 276 837 MTN shares. The MTN shares will be distributed to the executive directors pro rata to their acquisition considerations. |
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