As previously disclosed in the various announcements made by the company during the course of this year, the board of R&E has continued to endeavour to resolve the impasse between R&E and JCI Limited (“JCI”) (collectively referred to as “the companies”).
Such endeavours have included the proposed merger by way of a scheme of arrangement (“the scheme”) in terms of section 311 of the Companies Act (61 of 1973) as amended (“the Act”) proposed by R&E between R&E and the shareholders of JCI (excluding R&E) (“the JCI scheme participants”), which proposed merger failed when the requisite majority of JCI scheme participants declined to approve the scheme on 9 April 2009. This was soon followed by the signing of a memorandum of understanding (“MOU”) between inter alia R&E and JCI on 5 May 2009, with a view to settling the claims between the companies on or before 31 May 2009. The settlement as envisaged in the MOU was not achieved by the target date. The board of R&E remains hopeful, however, that a settlement may still be achieved but continues to assess all options at its disposal, including arbitration.
Notwithstanding the continued inability of R&E to produce meaningful annual financial statements, as a result of the well-publicised alleged misappropriation of the company’s assets, the present board of R&E nevertheless aims to provide R&E shareholders with appropriate financial information as timeously as possible under the circumstances. In this regard, shareholders are informed that an information update comprising an updated net asset value statement for the R&E group (at 31 March 2009), together with other relevant information concerning settlement negotiations between the companies, the conclusion of the MOU, an update as to R&E’s litigation and claims against third parties, and R&E’s future strategy, will be available on R&E’s website today. The information update will be posted to all shareholders on Monday, 15 June 2009.
12 June 2009
PSG Capital (Pty) Limited: Sponsor