The BBBE Offer

Dear Shareholder

The BBBEE offer

 GPI shareholders are referred to the circular to shareholders dated 10 July 2006 (“circular”) which relates to, inter alia, a broad-based black economic empowerment transaction (“BBBEE Transaction”) in terms whereof GPI shareholders who are either “black persons” or “black enterprises” (as defined in the circular), are  invited to  take up participatory units in the GPI BBBEE Trust (“Offer”), and subsequent press announcements.

Litigation by Sancino Projects Limited and Blue Bay Partners (Pty) Ltd

Shareholders of GPI were  advised in  a news  report dated  11 August 2006 and on GPI’s website that Sancino  Projects Limited  (“Sancino”), a  shareholder of GPI, who was later  joined  by Blue Bay Partners (Proprietary) Limited (“Blue Bay”), instituted urgent proceedings against GPI  in  the Cape  High  Court,  inter  alia,  to   interdict the voting at the shareholders meeting  of 30 July 2006  and  the implementation of the Offer pending the  hearing of an  application in  terms of section 252 of the Companies Act, No 61 of 1973 to challenge the BBBEE  Transaction   and   GPI’s   acquisition  of further interests in Sunwest International (Proprietary) Limited (“Section 252 Application”). At the time  GPI  agreed  with  Sancino and Blue Bay that the meeting would proceed but that the Offer will not be implemented pending the hearing of the Section 252 Application.

Sancino has since issued its Section 252 Application, and it has been agreed that the matter will be heard in the Cape High Court on 6 March 2007.

Blue Bay has since withdrawn all litigation against GPI.

GPI is opposing Sancino’s  Section 252 Application,  which it  regards as  spurious and the directors are confident that GPI will be successful in doing so.

Extension of Offer Period

Qualifying GPI  shareholders are advised that, in  light of the pending litigation with Sancino, the  GPI  BBBEE Trust trustees,  in  consultation  with GPI,  extended  the closing date of the Offer to 17h00 on Friday, 30 March 2007, to allow a  sufficient time for the Section 252 Application to be heard and for the Offer to be closed and implemented thereafter.

Procedure to be followed

The  GPI  BBBEE Trust and GPI have decided that it would be prudent to allow qualifying GPI shareholders who accepted the Offer, to withdraw their acceptances of the Offer should they wish to do so.

Should you wish to withdraw your acceptance of the Offer, kindly complete the enclosed document and return it to the offices of GPI at 6th Floor, Thomas Patullo Building, 19 Jan Smuts Street, Foreshore, Cape Town.  Your application money, together with interest earned thereon from the later of 8 September 2006 or the date upon which your  application money  was received, calculated at a rate of 5.5%, nominal annual compounded annually, will be returned to you as soon as possible thereafter. 

 

Statement by board of directors of Grand Parade Investments Limited (GPI) regarding the planned listing of GPI on the JSE – 2006/11/02

The Board of Directors of GPI has reviewed the joint announcement by Cape Employment Trust (CET) and Dynamic Cables RSA Limited (Dynamic) dated 1st November 2006 as far as it relates to GPI.