Trinity Asset Management (Pty) Limited and Trinity Holdings confirmed today they had reached a settlement with JCI Limited (“JCI”) and Randgold & Exploration Company Limited (“R&E”) to withdraw the respective liquidation applications for the two companies.
Trinity Holdings says it decided to withdraw its liquidation application against JCI, which stemmed from its damages claims in terms of a share swap agreement between the companies. This was after Investec, which has been funding JCI, provided them with 4.6m Western Areas shares and R14,5 million in security against their claim.
Quinton George, the Chief Executive of Trinity Asset Management and Trinity Holdings, says Trinity Holdings is still pursuing its damages claim of R116 million against JCI after JCI’s refusal to implement a share swap agreement in terms of which Trinity would swap its 7 million R&E shares for 4,6 million Western Area shares held by JCI.
JCI is contesting the validity of the share swap agreement entered into by former JCI and R&E CEO, Brett Kebble.
“While we strongly believed in our case, the fact that full security for our claim has now been provided – no doubt as a result of the liquidation application – renders the liquidation application unnecessary”
Peter Gray, the CEO of JCI, says he is pleased that the company would be spared the expense of a drawn out fight against the liquidation application but that the damages claim would be opposed. The Costs of the JCI liquidation application will be payable by the losing party in the damages claim.
George says it was decided to withdraw the R&E liquidation application, which was based on no faith in the management, when R&E agreed to Trinity nominating two members to its board. The parties have agreed to pay their own costs in regard to the R&E liquidation.
“We welcome the opportunity to gain representation on the board which will directly benefit the interests of shareholders. I’m extremely pleased at the manner in which this has been concluded,” says George.
Gray, who is also CEO of R&E, says the Trinity nominees will be processed by the R&E nomination committee as quickly as possible.
“I think shareholders of both companies will celebrate the fact that common sense has prevailed and that further major legal costs have been avoided,” says Gray.
Both Gray and George thanked the executives at Aflease Gold who had brokered the agreement.
Gray confirmed that JCI would proceed with a High Court action against Kabusha Mining & Finance (Pty) Limited for R75,5 million and against Trinity Holdings for R35,25 million. The claims arise from a R75 million payment made by JCI to Benoryn on behalf of Kabusha in August 2005. JCI and Trinity stood as co-sureties for the transaction. JCI is claiming the full amount from Kabusha, alternatively for Trinity to pay its pro-rata contribution.
For more information contact:
Trinity Asset Management
Tel: +27 21 700-4880
Mobile: +27 83 266-3745
JCI and R&E
Tel: +27 11 880 1510
Mobile: +27 83 253 5988